500 millionusers worldwide

Facebook mission

Give people the power to share and make the world more open and connected

more than halfof users return daily

=

50M+users in U.S. per day

Tuesday nightviewers

Sunday nightviewers

+

users per dayAverage daily reach

Source: Nielsen daily reach May 2010

56 million

53 million

39 million

21 million

19 million

Time spent

Source: Nielsen monthly time spent July 2009 – April 2010

Jul-09 Oct-09 Jan-10 Apr-100

4

8

hours

Highly engaged audience

Google

Yahoo!

Facebook

MSN/Bing

YouTube

AOLMediaNetwork

Amazon

FoxInteractiveMedia

eBay

CNNDigitalNetwork

CBSEnt. Network

0 25 50 75 100 125 150 175 200 225 250 275 300 325 350 375 400 425 450 475 500

0

5

10

15

20

25

30

Time Per Person (in minutes)

Vis

its

Per

Pers

on

Source: Nielsen NetRatings, Jan ’10; Top 20 ad supported sites home/work

Source: comScore, May 2010

Active user growth in Latin America

63 MM

Facebook penetration in Latin America

Source: Facebook and Internet World Stats (www.internetworldstats.com ), July 2010

Country Active Users Internet Users Penetration

       Argentina 10.500.000 20.000.000 53%

Bolivia 694.000 1.050.000 66%

Brazil 8.850.000 72.027.700 12%

Chile 7.050.000 8.369.036 84%

Colombia 10.100.000 20.788.818 49%

Costa Rica 758.000 1.500.000 51%

Dominican Republic 872.000 3.000.000 29%

Ecuador 1.190.000 1.840.678 65%

El Salvador 374.000 975.000 38%

Guatemala 649.000 1.960.000 33%

Honduras 322.000 958.500 34%

Mexico 13.900.000 27.600.000 50%

Panama 581.000 934.500 62%

Paraguay 252.000 894.200 28%

Peru 2.830.000 7.636.400 37%

Uruguay 837.000 1.340.000 62%Venezuela 6.710.000 8.846.535 76%

       Total 63.269.000 179.721.367 35%

http://www.facebook.com/video/video.php?v=759686445111

THE SOCIAL UNIVERSE August, 2010

The Social GraphFriends Famil

y

CoworkersBrands

Identity

Identity, social graph & authentic

connections

Platform

Technology underpins and

enables

Sharing

Sharing via social graph – evolving

over time

Facebook is built on 3 pillarsUnderpinned by technology

Users

400mm+ real people

Advertisers

Brands and organizations

Developers

Developer community

creating experiences

Facebook serves 3 core audiences

BRANDS

Global platform providing efficiency, effectiveness, scale

the social context

Word of mouth

Friends influence friends

Like adLike ad with social

context

+68% lift in brand metrics

Fans increase campaign value

Via a media campaign and/or organic impressions you have some connections

Via organic impressions, you will get a few more

connections

Run a media campaign and reach your target audience. With a US reach block that’s over 50M in

one day.

If you have 50K fans, 12% of the people you reach will see an ad with

social context, the names of their friends

And ads with social context increase the value of your media. On average

we see a 68% increase in brand lift.

If you have 500K fans, the number

of people who see an ad with social context jumps to 40%

Relative value of each based on brand lift

Impressions62

Social Context67

68% lift

Organics4

100% liftPublishing

2

200% lift

Paid Media Earned Media

Estimates based on a fan base of 500KLift % = that above the initial paid impression

social context increases effectiveness

68%68%lift in ad recalllift in ad recall

2X2Xincrease in message awareness

increase in message awareness

increase in purchase intent

increase in purchase intent

4X4X

Facebook products

Pages Applications

Premium ads Marketplace ads

Social plug-ins

A new ad modelDevelop deep relationships with your audience

1. Build a Page

2. Advertise to increase connections

3. Publish to your network

Fan Pages

Facebook Page

Brand information

Multi-media content

Applications

Real-time conversation

sAnd more...

Facebook Page

Profile Picture JPG, GIF or PNG

Blurb Box 130 characters

Left columnStatic, 200 px

Main columnDynamic, 540 px

Tabs 6 visible tabs,

option for more

Status 420

characters

Wall Real-time updates

Fan & Brand content

Facebook Page

Wall Tab Settings Info Tab Settings

Facebook Page

Wide Column 380 px Narrow Column 200 px

Photos

Videos

Discussion Boards

Events

Static FBML

Reviews

Other Platform Applications

Boxes tab

Facebook Page

• Real-time publishing

• Same as on user profiles

• Multi-media functionality

• Post text, photos, videos, links etc.

• Dialogue with users

Publishing

Premium Ads

Premium Ads

Event Video commenting

Poll Virtual gift Sampling

Like

Premium Ads

Users can engage with ads the same way they interact with other content on Facebook

Users don’t have to leave their home page

Engagement sparks organic sharing to the user’s friends, giving advertisers viral impressions

Like Premium Ad

Title links to Facebook Page

Title (25 characters)

Body copy(135 characters)

Image(110x80)

Image links to Facebook

Page

Users can connect to the Page in line

x

Like Premium Ad

1. Click the Like button to connect with the brand

2. You are now connected

Video Comment Premium Ad

Comment on this video...

Thumbnail(110x80)

Title (25 characters)

Body copy(135 characters)

Title links to Facebook Page

Video plays on click

Users can comment in

line

x

Video Comment Premium Ad

1. Click thumbnail to play video

4. Comment on video for friends to see

2. Background dims and video plays in center of screen. Fan

Page or “like” video during play.

3. At the end, click to brand Page or share video with

friends

I love Virgin America!

Event Premium Ad

Image links to event on Facebook

Users can RSVP in line

Title (25 characters)

Body copy(135 characters)Image

(110x80)

Date:Location:RSVP:

Yes Maybe No

x

Event Premium Ad

1. RSVP to event 3. Add personal message2. Invite friends

Poll Premium Ad

Title links to Facebook Page Title (25 characters)

Body copy(135 characters)

Image(110x80) Image links to

Facebook Page

Response (25 characters)

Response (25 characters)

Response (25 characters)

Users can respond to poll in line

Question (40 characters)

x

Poll Engagement Ad

1. Respond to poll3. See your friends’

results2. See results

Title links to Gift tab on Facebook Page Gift Name (Free) (25 characters)

Body copy(135 characters)

Gift Image(64x64)

Image links to Gift tab on Facebook

Page

Users can send gifts in line

Give this gift to a friend.

Gift Premium Ad

x

Gift Premium Ad

1. Give gift to a friend

3. Send to another friend

2. Add personal message

Sampling Premium Ad

Link opens window to capture user info

Title (25 characters)

Body copy(135 characters)

Image(110x80)

Get a free sample of [Product] (35 characters)

xTitle links to Facebook Page

Image links to Facebook Page Title (25 characters)

Body copy (135 characters)Image

(180x130)

1 to 5 options(20 characters

each)

Sampling Premium Ad

1. Click to get a free sample

2. Enter your shipping info and get a free sample

Marketplace Ads

Reach blockReach 100% of all targeted users in one day

Reach Block served in premium inventory page

Reach Block

•100% of targeted users see your ad as their first 3 premium impressions

•Then, up to 2 additional premium impressions to reach the impression goal

•Reach Blocks and premium impressions always have 100% share of voice

Go where your audience is going

Reach Block on premium inventory pages

Reach Block

Brand lift Better ROIBetter ROIOrganic

impressions

Benefits of Reach Block

Performance and pricing

▪Organic impressions

▪2-3x more organic impressions are generated for a reach block versus a standard campaign with paid media over a period of time

▪Brand lift

▪11 of our top 15 campaigns, as measured in terms of brand lift, used reach blocks

▪Volume pricing for impressions

ComparisonsHome page reach products in the U.S.

Yahoo HP MSN HP MySpace HP (Login)

FB HP 5 Cap Reach block

FB HP Road block

Daily Users 35M 17M 20M 52M 52M

Imp (MM) 280M 140M 90M 204M + SGI 468M + SGI

Avg Imps per user

8 8 4.5 3.9 8.9

Price List 500K-1M. Actual 800K

List 500K. Actual 350K

300K + for special creative

460K 950K

eCPM $3.00(Actual) $2.50 (Actual) $3.00 + for creative

(Estimate)

$2.25 $2.03

Price per exposed user

$.02 $.021 $.015 + for creative

$.009 $.018

December 2009PRICING SUBJECT TO CHANGE

demo and geotargeting

categorytargeting

keywordtargeting

Targeting

Profile-based targeting

•Location

•Age/Birthday

•Gender

•Education

•Workplace

•Relationship

•Sexual Preference

•Language

•Activities

•Interests

•Music

•TV

•Movies

•Books

•Groups

•Applications

•Connections

•Status updates

Structured Unstructured

When a user engages with an ad

A custom targeting cluster of similar users is formed

Learned Targeting• Facebook analyzes the users

who have engaged with your ad

• We look at:

• Keyword interests

• Demographic

• Past ad click history of all of our users

• Only Facebook can aggregate these three sources to find your consumers

Applications

Social plugins

•Add a social layer to your existing sites

Social plugins•Add a social layer to your existing sites

Best practices

Guiding principles for brands

1. Make it social.“That’s what I do on Facebook.”

2. Keep it simple.“If I understand something, I’m more likely to try it.”

3. Optimize for speed.“If it’s fast, I’ll do more of it.”

4. Integrate.“Keep it within my Facebook experience.”

Facebook Ads tips

Use multiple creatives

Example: home page Reach Block with multiple creatives

•Straightforward copy

•Relevant imagery

•Tie back to brand

Be authentic

Make every word count

87 characters

131 characters

25 characters

15 characters

A/B test your ads

+40

%+40

%

Use evocative imagery

Create practical virtual gifts

Examples of past virtual gifts

•Make gifts social, easy to share

•Use simple, iconic images

•Be conversational

•Avoid small fonts, busy backgrounds

Tie events to causes

Event ad

Event

Page

Highlight brand character

Have a Facebook Page

Facebook Pages tips

Promote with Engagement Ads

Fan growth

Proven, familiar to users, deeply integrated

Focus on publishing10x views in Stream versus Page

22 posts by 20 people

1,260 likes1,545 comments

vs.

Keep it simpleMake content eye-catching, universal, easy to consume

Innovate

Comment box

Establish a consistent voice

Interact with and feature fansJoin the conversation:

Toyota Prius example

Recognize Fan creativity:

Kellogg’s Pop-Tarts example

Pace yourselfPace out your posts to maximize your impact

Coca-Cola example: Tattoo Tuesday

Publishing calendar

Analyze, adjust, and optimize

Aggregate stats about all

connections

Demographic and geographic stats

Insights Dashboard

Be timely and relevantEmbrace timely opportunities to connect with Fans

Vitamin Water: LeBron MVP award example

Starbucks: New York Times article

example

Case studies

Product awarenessHow Fast Time Flies

How Fast Time Flies Facebook Page

Objective: To direct traffic and increase awareness of a digital scrapbooking service.

Solution:Facebook ads targeted at potential customers

Key Results:•Facebook ads were more effective at

increasing the company’s exposure than other types of click-through ads by driving referrals to its website

•70 percent year-over-year increase in company sales as a direct result of its Facebook ad campaign

Customer acquisitionZipZapPlay

ZipZapPlay Facebook Ads

Objective: Encourage user acquisition

Solution:Facebook’s keyword target filtering

Key Results:Over 100 million impressions

“Without going into specific numbers, the ads have been critical in driving our traffic and our revenue so far. They’re one of the key pieces of our strategy.”

-Curt Bererton, CEO ZipZapPlay

Build a brandPedigree®

Build a brandPedigree®

Build a brandPedigree®

Brand awarenessDreamworld Australia

Dreamworld Australia Facebook Page

Event Premium Ad

Fan Premium Ad

Poll Premium Ad

Brand awarenessRed Bull

“Red Bull Stash” landing page

Become a Fan Premium Ad

Direct Response Ad

Brand awareness & trialJelly Belly

Event Premium Ad

Become a Fan Premium Ads

Viewer intentThe Travel Channel: Man v. Food

Poll Premium Ad

Fan Premium Ad

Event Premium Ad

Cause awarenessKellogg Cares

Kellogg Cares Page

Video Comment Premium Ad

Brand awareness & trialTexas Pete Hot Sauce

Fan growth over time

Campaign Launch

Sampling Premium Ad

Brand launch2degrees Mobile (New Zealand)

Fan growth over time

Reach Block

Fan Premium Ad

Movie launchUniversal Pictures: Bruno

Fan growth over time

Event Premium Ad

Fan Premium Ad

Brand awarenessSephora

Virtual Gift Premium Ad

Organic home page impression

Product testSplenda® Mist

Splenda Mist Facebook Page

Splenda Mist Sampling Application

Drive ticket salesLionsgate: Saw V

Fan Premium Ad Virtual Gift Premium Ad

Product awarenessWendy’s

Virtual Gift Premium Ad

Success Stories

Special promotionJetBlue

Home Page Premium Ad

Marketplace Fan Ad

JetBlue sweepstakes

Increase connections & awarenessSubway

Subway Eat Fresh, Eat Free Sweepstakes

Become a Fan Premium Ads

Increase connectionsSouthwest Airlines

Become a Fan Premium Ads

Product launchMicrosoft Windows 7

Become a Fan Premium Ads

Product launchVitamin Water

Vitamin Water Facebook Application

Cause awarenessGeneral Mills: Cheerios

Become a Fan Premium Ads

Brand awarenessHonda Social Experiment

Multiple Premium Ad creatives

Drive salesJC Penney

JCPenney Facebook Page

Fan Premium Ads

Promotion awarenessStarbucks

Starbucks Facebook Page

Fan Premium Ad

Event Premium Ad

Increase connectionsBest Buy

Fan Premium Ads

Best Buy Facebook Page

Increase engagementNike Livestrong

Video Comment Premium Ad

Lance Armstrong’s Facebook Page

Increase connections, engagementLevi’s

Video Comment Premium Ad

Fan Premium Ad

Levi’s Facebook Page