The Economist reports: Around a third of Facebook’s active users are in Asia (excluding China, where the service is blocked). Another third are in America and Europe; and the rest are elsewhere around the world. Of the top ten apps in India, Facebook controls three.
Facebook is in such an exalted position because no other company, with the exception of Google, has as many users, knows as much about their behaviour online and can target them as effectively. In addition to all the personal and geographical information, interests, social connections and photos users share, the social network is able to see where else they go online. Anywhere with a “like” symbol feeds back information, as do sites that allow people to log on with their Facebook credentials.
Advertisers can reach consumers with laserlike precision. An energy-drink company may target ads at parents of teenage athletes; a retailer can market goods to people from specific neighbourhoods who have visited its website. “There are three compulsory elements to online advertising today: you have to have a mobile website, and be involved with Google and Facebook,” says Peter Stabler of Wells Fargo, a bank. As a result Facebook claimed 19% and Google 35% of the $70 billion spent on mobile advertising worldwide in 2015, according to eMarketer, a research firm. Twitter and Yahoo had to make do with a meagre 2.5% and 1.5%, respectively.
Facebook is likely to remain on Google’s tail. Its core service continues to grow. Last year it added 200m new users. It has successfully outmanoeuvred regional competitors, such as Orkut, a social network owned by Google that was popular in Brazil. This is partly down to Mr Zuckerberg and his hacker mentality. He believes in rolling out products quickly: “Move fast and break things” is a company motto. [Continue reading…]