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Asia helps drive Facebook's 1-billion goal
by Staff Writers
Kuala Lumpur (AFP) May 16, 2012


As Facebook nears saturation levels in some Western countries, Asian users are helping drive the social-networking leader's march on the 1-billion-user milestone and beyond.

The Facebook-led social-networking phenomenon has profoundly impacted the region -- challenging conservative ideals, connecting diaspora communities and allowing users to circumvent authoritarian information controls.

That impact looks set to deepen as Asia's huge population flocks to Facebook, representing a vital growth market for CEO Mark Zuckerberg's Harvard dorm-room creation as it readies for this week's hotly anticipated IPO.

More than one in four of Facebook's estimated 900 million-plus users are in Asia -- India's 45 million community and Indonesia's 42 million rank third and fourth worldwide behind the United States and Brazil.

In the past half-year, new users have grown 20 percent in India, 65 percent in Japan and 56 percent in South Korea, according to social media tracking website socialbakers.com.

"For the Facebook platform itself, Asia is wildly important. But in terms of the future of the platform, it is even more important," said Tom Crampton, head of Asian social media for advertising giant Ogilvy & Mather.

Facebook has steamrolled rivals Friendster and MySpace in Asia, fueled by factors including the long-distance communication needs of the hundreds of millions of migrant labourers from India, Indonesia, the Philippines and elsewhere who work abroad in the region.

But social-networking sites have also enabled users to challenge social strictures and break information monopolies, forcing governments to take notice.

Discontent aired online in tightly controlled Singapore last year was a major factor in the ruling party's worst polls showing in its five decades in power.

In Malaysia, whose users on average have the most "friends" of any country, according to a 2010 survey by a global research firm, Facebook and other platforms were used to pump up turnout for pro-democracy protests by tens of thousands last month, and to criticise a tough police response.

Meanwhile, premier Najib Razak has repealed some authoritarian laws in a campaign widely seen at winning over the increasingly vocal online population.

Asian governments and corporations are being forced to listen and respond, said Yasir Yousuff, managing director of NM Incite, the social media arm of market research firm Nielsen.

"(Singapore and Malaysia showed) Facebook and social media have played a huge part in providing a platform for people to voice their feelings and create symbolic actions that can help rally people to the cause," he said.

In China, Facebook and other Western social media are blocked by Communist authorities but have inspired Chinese clones that -- while heavily censored -- have been used to channel public pressure on the government.

Conservative Asian mores also have been challenged in countries such as Muslim Indonesia, where Facebook is a popular way to find romantic partners across the nation of 17,000 islands, angering religious authorities.

"Asians are not as aggressive at networking in person as an American or European might be. Facebook has really tapped into that psyche that you can easily form groups of like-minded people," said Napoleon Biggs, head of digital media for Asia at marketing firm Fleishman Hillard.

Challenges remain for Facebook in Asia.

Besides China, India's potential is crimped by poor infrastructure and low Internet penetration while domestic Japanese and South Korean rivals pose stiff competition in those markets.

But rich potential remains, according to Nielsen.

It said in a recent report that consumers in developing Asian markets like Thailand, the Philippines, Vietnam and Indonesia spend far more time online than their developed-country counterparts for everything from watching video content to researching purchasing decisions.

For Facebook, the future in Asia will depend heavily on its ability to capitalise on the region's famed affinity for the mobile phone, analysts said.

Friendster was tops in Indonesia -- where mobile Web access dominates -- until Facebook's application for Blackberry took off in the past few years.

"Almost overnight, it went from being a Friendster nation to a Facebook nation. Mobile is a great untapped revenue source for Facebook in Asia," Crampton said.

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GM to pull ads from Facebook: report
New York (AFP) May 15, 2012 - General Motors late Monday confirmed that it is pulling its advertising from Facebook because it determined paid ads had little impact on consumers.

GM had been spending about $10 million on paid advertising and $30 million on unpaid marketing on Facebook.

"We are reassessing our Facebook advertising, but we remain committed to very aggressive social media strategies and will continue to push content on Facebook through our product and brand Facebook pages," GM spokesman Patrick Morrissey told AFP.

The news comes at a bad time for Facebook, which is expected to launch an initial public stock offering Friday valuing the social networking site at around $100 billion.

GM's pullback comes as other marketers are questioning the value of paid ads on Facebook despite the vast amounts of time huge numbers of consumers spend on the site.

The US auto giant is the third largest advertiser in the United States with expenditures of $1.8 billion in 2011, according to Kantar Media.

It will continue to expand its use of unpaid marketing such as the creation and management of content on the Facebook pages of its brands and cars, according to Morrissey.

While Facebook and Google both have broad reach, ads posted at the search giant's websites are 10 times more likely to be clicked than those at the social network, according to online marketing specialty company WordStream.

WordStream gave Google top grades for performance of its display ad network while it found Facebook in need of improvement.

"So far, Facebook's advertising platform hasn't kept pace with the explosive growth of its social network, and it remains to be seen if CEO Mark Zuckerberg even wants to focus on advertising as a source of revenue," said WordStream chief technical officer Larry Kim.

"In his 2,500-plus word letter to (prospective) shareholders this month, he mentioned advertising just once."

Google offers twice as many advertising formats as Facebook, including ads in videos and mobile games, according to WordStream.

"The comparison suggests that Google currently offers advertisers more value in terms of both options and results for advertisers, and that Facebook has a lot of catching up to do," WordStream said.

Facebook has yet to support advertising on smartphones or tablet computers that have become popular social networking tools, and has more limited ad targeting options than Google, the analysis concluded.

"As good as Facebook has been at evolving to serve consumers, that's how bad it's been at serving marketers," Forrester analysts Nate Elliott and Melissa Parrish said in a blog post.

"Somehow Facebook still hasn't stumbled upon a model that's proven consistently successful for marketers, or that brings in the massive revenues to match the site's massive user base."

Facebook shortcomings at making money appeared not to be dousing passion for owning the company's stock.

Facebook on Tuesday raised the price range of shares to $34 to $38 in a move that could value it at more than $100 billion when it starts trading on the Nasdaq exchange.



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Facebook boosts IPO share price amid hot demand
New York (AFP) May 15, 2012
Amid signs of strong investor demand, Facebook on Tuesday boosted the share price estimate for its stock market debut, giving the leading social network a value that could top $100 billion. Facebook will price its initial public offering (IPO) between $34 to $38 per share, up from a range of $28 to $35, according to paperwork filed with the US Securities and Exchange Commission. The rais ... read more


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