Friday, July 27, 2012

Facebook Inc (NASDAQ:FB) CEO sees Open Graph as core to the Network’s Strategy

Facebook Inc(NASDAQ:FB) CEO Mark Zuckerberg is expecting Open Graph to be a potential revenue generator for his social network Facebook, with the potential to extend beyond the web and be a game-changer in the way that people connect with one another.

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Open Graph is a platform launched by Facebook last September and shares subscribers’ action such as reading, watching, listening and other activities and posts it to their Timeline and News Feeds. Simply put, it keeps a watch over the activities of its users and communicates it to their friends who may then click on those links as well, creating a shared experience much like in the real world.

On Friday, Zuckerberg said that more than 1 billion stories were shared from Open Graph apps every day, adding that it would evolve as a core platform to the network’s strategy. Though Open Graph does not directly generate revenues for Facebook, it can shares in the revenues of developers who build applications on the platform and distribute them to users. At present users mainly use the platform for games apps, which form a major chunk of its revenues.

Facebook, which is facing challenging times, due to uncertainty over sustaining its revenue with users shifting more to mobile devices where it still has not been able to gain traction from mobile advertisers, s looking for newer ways to monetise its network’s apps and platforms. The integration of media apps with commerce would give users a “more nuanced” social experience, Zuckerberg said.

Facebook is now testing a new subscription billing option for third-party developers that could generating revenues for Facebook and is also building tools and products that allow companies to build social products.

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