How would you describe the Facebook business model?
The Facebook company includes Facebook, Messenger, Instagram, and WhatsApp. Facebook also sells hardware devices such as Oculus VR and Portal. The interviewer wants to know that you understand the business model behind the company. This knowledge will show the interviewer that you have performed ample research before your interview and that you are ready to bring a strong foundation of knowledge to this Product Manager role when you are hired.
Facebook expresses in its Product Manager job posting that its mission is to 'give people the power to build community and bring the world closer together. Through our family of apps and services, we're building a different kind of company that connects billions of people around the world, gives them ways to share what matters most to them, and helps bring people closer together.' Be prepared to tie the company's mission statement into its business model to show that you bring a full understanding of its importance in Facebook's overall success.
"I have spent a great deal of time studying Facebook and its business model. Whether it's Facebook or its other offerings such as Instagram, Messenger, or WhatsApp, users can access most of the Facebook company's services for free. Facebook profits primarily through the ads it shows its users on these digital platforms. Companies large and small widely advertise within Facebook and Instagram, which accounts for billions in revenue. I recently read that Facebook made 86B in 2020, and 98% of that revenue came from advertisers. The other 2% was generated from the sale of Oculus and Portal devices and other smaller revenue streams. Through my research, I also discovered that Facebook's US market share on ad revenue was 23% in 2019, coming closely after Google's 32% market share. I found this statistic fascinating, especially considering that Facebook is reportedly growing faster than Google overall. This success, plus the fact that Facebook advertising is affordable and accessible for most, truly drives home the truth behind Facebook's mission to give people the power to build community and bring the world closer together. I look forward to learning more about the Facebook business model as I join the company and contribute to these notable successes."
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