ASSIGNMENT ad products on Facebook By Promoted Trends, Promoted

ASSIGNMENT II                                   Your Name: Sarfaraz Khan (A20415427)

Q1: Facebook and Twitter:  Using relevant metrics, compare the business models of Facebook and Twitter.

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ANS 1

 

Facebook’s Value Proposition:

 

·         It provides a facility to the user so that user can connect with the people.

·         It is used to make social connections and to share information.

·         Facebook is using advanced technology with the strategy of acquiring competitor which makes facebook more useful and advance 

·         It provides customized service for special groups

·         It is used to target consumers and get direct conversions with them so that product will become cheaper

·         It has ability to go viral which can spread the news/information across the globe quickly

 

Twitter’s Value Proposition:

 

·         It is a real-time news source

·         It can reach to the global audience at very fast speeds

·         It is a powerful alternative of media platform for the distribution of news, videos, and pictures

·         It can be used for advertising with its Promoted Tweets, Promoted Trends, and Promoted Accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

Key Metrics: Use January – September 2017 time period (first three quarters)

Metrics

Facebook

Twitter

Facebook/Twitter

Revenue

By advertising user displaying ad products on Facebook
 

By Promoted Trends, Promoted Tweets, Promoted Accounts

Both having different types of revenue model

Business Model

Facebook has a traditional business model

Twitter have many users with crossover of expectations which is not surprising. Which causes functions overlap. 

Facebook is more traditional than twitter.

DAU

DAU increases 3.19 % increase from Q1 to Q2 and from Q2 to Q3 it increased to 3.24%
 

The Stats of DAUs in first Q1 Is 14% which is decreased to 12% in Q2 and then further increase to 14% in Q3

The DAU is increases for facebook every quarter but on other hand the twitter have decreased number of DAUs in Q2

MAU

MAU increased to 3.61% from Q1 to Q2 and further increased to 3.29% from Q2 to Q3
 

0.30% decrease in Q1 to Q2 to Q3 1.20%
Q1-327, Q2-326,Q3-330(in millions)

MAU also have same stats trend for facebook and twitter

ARPU/Total revenue

ARPU-11.8% increase in Q1 to Q2
And 7.1% increase in Q2 to Q3
Total revenue-16% increase from Q1 to Q2 and 10.80% increase from Q2 to Q3
 

Total revenue-5% increase in Q1 to Q2
And 3% from Q2 to Q3
 

More increase in revenue for facebook than twitter

 

 

Conclusions:

Facebook is doing good than twitter in all the aspect of business

 

 

Q2. Which industries have been disrupted by Twitter? Explain briefly.

(Use a bullet point format)

 

Ans 2- The industries which is disrupted by twitter are

·         Traditional online ads industry

o   The traditional online ad industry is hurtled by twitter as twitter provide new way to advertise with Promoted Trends, Promoted Tweets, Promoted Accounts

·         Online broadcast industry

o   The online breasting by twitter reach to the user very quicker as compared to another online broadcast

·         Twitter is expanding the ways to live stream video on Periscope which can disrupt the live streaming industry

 

 

 

Q3. There are several players in the Internet music services. Compare the business models of Pandora, Spotify, Google Play Music and Apple Music in a tabular form.

 

Ans 3

 

 

Pandora

Spotify

GP-M

Apple

Product Characteristics

personalized radio that plays what you love and continually evolves with your tastes.
 

Spotify, provides the right music for every moment on users phone, computer, your tablet

It is music and 
podcast 
streaming service 

User have access to radio, Connect, Playlists and music selection

Value Proposition

Provides users preferred and specialized music listening experience

It has good product quality and deep social integration

 Users can purchase additional tracks in addition to offering music and also stream online music
 

User friendly,
Good UI, more music options 

Revenue model

Revenue generated mostly by Pandora Premium users

Spotify has a mixed advertising/freemium business model.

Paid subscription by users

User subscription
 

 

 

Which of the four will be most successful five years from now? Why?

 

 

ANS 3

When we add it up, Spotify has the best free service but its content is otherwise par for the course these days. Apple Music had a strong showing, but like Spotify its only big feature is its music. Given that YouTube Red is directly linked into Google Play Music and provides an untold amount of additional, ad-free content, the service that has the highest compatibility and the most additional content is Google Play Music, so in my view Google play wins it.