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Our Strategy
We are in the early stages of pursuing our mission to make the world more open and connected. We believe
we have a significant opportunity to further enhance the value we deliver to users, developers, and marketers.
Key elements of our strategy are:
·
Expand Our Global User Community. There are more than 1.5 billion internet users on personal
computers, and more than three billion mobile users worldwide according to GSMA Wireless
Intelligence, and we aspire to someday connect all of these people. As of December 31, 2012, we had
1.06 billion MAUs globally with approximately 84% accessing Facebook from outside the United
States. We continue to focus on increasing the number of people using Facebook across all
geographies, including relatively less-penetrated, large markets such as Brazil, India, Mexico and
Japan. We intend to increase the size of our network by continuing our marketing and user acquisition
efforts and enhancing our products, including mobile apps, in order to make Facebook more accessible,
useful and engaging.
·
Build Great Social Products to Increase Engagement and Provide the Most Compelling User
Experience.
We prioritize product development investments that we believe will create engaging
interactions between our users, developers, and marketers. We continue to invest significantly in
improving our core products such as News Feed, Timeline, and Photos, developing new products, and
enabling new Platform apps and website integrations. To provide the most compelling user experience,
we continue to develop products and technologies focused on optimizing our social distribution
channels to deliver the most useful content to each user by analyzing and organizing vast amounts of
information in real time.
·
Make our Mobile Products Engaging and Easily Available. We are devoting substantial resources to
developing mobile products and experiences for a wide range of platforms, including smartphones and
feature phones. In addition, we are working across the mobile industry with operators, hardware
manufacturers, operating system providers, and developers to improve the Facebook experience on
mobile devices and make Facebook available to more people around the world. We had 680 million
MAUs who used Facebook mobile products in December 2012. In August 2012, we acquired
Instagram, Inc., which has built a mobile phone-based photo-sharing service that enables people to
increase their levels of mobile engagement and sharing. We believe that mobile usage of Facebook is
critical to user growth and engagement over the long term, and accordingly are prioritizing mobile
product development.
·
Enable Developers to Build Great Social Products Using the Facebook Platform. The success of
Platform developers and the vibrancy of our Platform ecosystem are part of our strategy to increase
user engagement. Social games have achieved significant levels of adoption by people using Facebook,
and we are also focused on working with leading app developers in categories such as news, movies,
books, fitness and music. Engagement with our Platform developers' apps and websites can create
value for Facebook in multiple ways: our Platform supports our advertising business because apps on
Facebook create engagement that enables us to show ads; our Platform developers may purchase
advertising on Facebook to drive traffic to their apps and websites; Platform developers use our
Payment infrastructure to facilitate transactions with users on personal computers; Platform apps share
content with Facebook that makes our products more engaging; and engagement with Platform apps
and websites contributes to our understanding of people's interests and preferences, improving our
ability to personalize content. We continue to invest in tools and APIs that enhance the ability of
Platform developers to deliver products that are more social and personalized and better engage people
on Facebook, on mobile devices and across the web.
·
Improve Ad Products for Marketers and Users. We are investing to improve our ad products in order
to attract more marketers to work with Facebook, to create more value for our marketers, and to
enhance their ability to make their advertising more relevant for users. Our advertising strategy centers
on the belief that ad products that are social, relevant, and well-integrated with other content on
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