NETWORK EFFECTS

Diffusion and Network Effects

Diffusion and Network Effects

Introduction

The term diffusion refers to the spread of an innovation throughout the economy or relevant potential users. It is associated with the innovation that has emerged in the field of social networking. Social Media is undoubtedly the most used form of media in current times. This can simply be proved by the fact that Social networking sites are not just about including your friends, colleagues and family in your profile, sharing pictures and updating status. In fact these social networking are now used for purposes far greater then these. For example, many amateur artists use this as a means of marketing their talents. Twitter is now used for organizing many large-scale charity events. Face book is one of that. It is most popular and most commonly used social networking site all over the world. Facebook users are from all regions and they spend hour and hours daily on Face book (Rogers, 2003).

It is now expected that soon number of Face book users will increase up to 1bn. These days social network of a Face book user reflects his or her real-life social network. It has been observed that in last few years, companies are getting involved in social networking on Face book and using Face book site as a brand advertising channel for their business. There are several ways on Face book that can be effectively used by companies for their advertisement. In Facebook, especially the sponsored sections and the newsfeed are the compelling candidates for advertising and marketing their products and services (Rogers, 2003).



Discussion

How Facebook was developed?

Mark Zuckerberg is the founder of Face book. He developed this site with his friends at Harvard University. Initially they limited the website's membership to the students of their university but further it was expanded to other colleges and universities of Boston as well. Due to its success and user friendly nature, it started supporting various other universities and after that it opened to anyone who is aged 13 and over. Now, it is allowed by Face book that any user who declares himself 13 can make his or her personal profile to use Face book (Rogers, 2003).

Facebook is a social networking site that was developed in February 2004. It is operated and owned by Facebook, Inc. since then, it is one of the most famous and commonly used website. There are one billion active users on Face book and more than half of them use Face book on a mobile device which is more convenient. It is first required to get registered then it can be accessed. Users have to create their personal profile after that they are allowed to add friends and send messages and share their information with them. They also receive automatic notifications while updating profile. Moreover, users can also join different groups according to their interests. They can also make groups and add their friend in different categories like work place, school, college or various other ...