Facebook has grown exponentially since it opened up to the
general populace. It currently ranks as fourth on all websites worldwide with
approximately 14.7 billion page views in September 2007. According to
eMarketer, 12 percent in Latin America and Carribean, 35 percent in Asia
Pacific, and 28 percent in Europe, Middle East and Africa use social networks. The strong international presence will prove to be very
beneficial for Microsoft’s investment in the long run.
In October 2007, Facebook sold 1.6 percent to Microsoft for
$250 million. The buzz regarding this partnership has run rampant in the news
media and the online community at large. How will this impact Facebook? Will it
affect online advertising? Will it change the user experience for the better or
worse?
The social networking space is fertile ground for Microsoft.
Although Microsoft has a presence in the international community, the
partnership with Facebook will ameliorate their visibility and connect them
with their core and fringe market. Microsoft will also benefit from the
expanded advertising audience leveraged by Facebook’s global network.
Currently, 43 percent of Facebook’s page views are from international users and
that is only expected to grow exponentially. According to Datamonitor, 75
percent of social networking users come from outside the United States.
How is this going to affect the Facebook user who logs into
their page to connect with friends? This partnership will provide Microsoft
with invaluable information – the contents of their users’ personal diaries.
Currently, my Facebook page contains data like my gender, age, origin,
relationship status, group affiliation, networks, interests, favorites, my
social graph and so much more. Without having face-to-face interaction with me,
they know details that only close friends are privy to.
This partnership will provide Microsoft with tangible
information that can be leveraged into increased convergences. Utilizing the
information that Ben Harper is my favorite musician, I absolutely love shoes, I
am a big fan of Weeds and Dexter, and I use T-mobile for cellular service will
definitely impact what form of advertising will be filtered to me.
Obviously, Microsoft has the muscles and tools to mine this
personal information to their advantage. Online users will no longer be
bombarded with banner ads that do not apply to them. They will increase the
chances for purchase by customizing the content. This targeted form will
decrease the margin of error involved in mass advertising, and provide a better
return for investment for the clients’ dollar.
- Reem Abeidoh