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Inside Facebook

Inside Facebook


Still Shy of 2 Million Users, Facebook Quadruples in South Korea

Posted: 04 Nov 2010 12:27 PM PDT

[Editor's Note: The data cited in this article is excerpted from Inside Facebook Gold, our membership service tracking Facebook's business and growth around the world. Please see Inside Facebook Gold to learn more about our complete data and analysis offering.]

Can Facebook succeed where Google has so far failed in South Korea?

The East Asian country, one of the four markets founder Mark Zuckerberg identified as top priorities for the next two years, has long beguiled Western consumer Internet companies.

Thanks to government policy, South Korea has the fastest broadband speeds in the world and leads other developed nations in Internet penetration. Broadband access is so pervasive, that there are even government counseling programs to combat Internet addiction. So Facebook will not have to deal with the same kinds of connectivity or Internet literacy problems it faces in other emerging Asian markets.

However, because of its insular Internet culture, South Korea is walled off from American technology companies. Native South Korean companies like the search engines Naver and Daum along with Facebook’s domestic social networking rival Cyworld are the biggest daily destinations for the country’s roughly 40 million Internet users.

Cyworld has about 16 million unique visitors every month, according to Google Ad Planner, to Facebook’s current 1.7 million active users.

The site has standard social networking features like custom profile pages, blogs and messages, but it also has a strong virtual worlds component with mini-rooms where users can make special avatars and buy virtual goods with Dotori or “acorns.” Like in Japan, Twitter is also an emerging rival with 3.5 million unique visitors.

All of these factors considered, there are a number of reasons why Facebook may do better than other American companies in this market. South Korean consumers are already comfortable using their real identities, as Cyworld requires new users to submit their National ID number, which is like a social security number, when they register. Authentic identity has been a core part of Facebook’s business strategy all along, unlike early rivals such as MySpace, which tolerated aliases.

Naver was able to hold its lead against Google in part because it built a walled social question-and-answer platform, Knowledge iN. That gave it extra private content to crawl and surface in queries. Facebook, of course, has its own such platform called Questions. South Korean users also rely more on friends and family to give them advice when making purchasing decisions, which plays into Facebook’s favor and its strategy around brand advertising.

There is also a very mature virtual worlds and goods market in South Korea, which Facebook’s social gaming partners like Zynga and Electronic Arts’ Playfish can help recreate.

For a good overview of Facebook and Twitter’s rising prominence in the country, Global Voices has translated several Korean blog posts on the topic. Both companies are becoming increasingly formidable rivals to Cyworld and Naver’s me2DAY.

To read more, and view data on Facebook's growth and demographics in over 160 countries around the world, please see Inside Facebook Gold.

Facebook, Other Companies, Promote Green Efforts on Facebook

Posted: 04 Nov 2010 12:26 PM PDT

Today, Facebook announced the launch of its Green on Facebook Page, a place the company hopes to highlight environmentally-focused efforts. The Page currently has about 9,000 Likes and information about Facebook's corporate green and energy efficiency programs, as well as links to its green partners.

While Facebook is already home to other environmental efforts, the company itself has made a renewed effort to frame itself as environmentally conscious. That effort might be in part a reaction — environmental activist group Greenpeace has been waging a campaign to criticize the company for using partly coal-derived electricity to power its servers.

In addition to launching the Green Page, Facebook noted in a press release that the company recently partnered with Alliance to Save Energy and donated $500,000 in advertising to promote Living Efficiently. It has also has continued to write detailed technical posts on mechanisms it has in place to save energy at its various data facilities, with the latest coming out yesterday.

So what’s the issue? The particular grid Facebook is on at its big new Oregon center does rely somewhat more heavily on coal (58%) than the national average (50%), but the company has countered by pointing out that the climate and its own practices help reduce overall energy consumption. Does Facebook deserve the special criticism from Greenpeace because of its use of coal-based power?

Pollution from coal power is a global problem that millions of energy consumers are contributing to — Greenpeace knows what it’s doing in picking its target. Facebook is a global company, known and used by more than 500 billion users, and is itself is a valuable medium for rallying people around causes.

Corporate Environmental Responsibility Marketing

Facebook isn't the only corporate entity to take its green message to Facebook — lots of big companies are doing so, too. Cisco, Clorox and NBC Universal also have created green Pages on Facebook to promote their environmental efforts and green products and practices.

Green is Universal is run by NBC Universal to encourage their 8,100 Facebook fans to adopt green habits, especially with a new application — Make Green Count — set for release this weekend. The app aims to help NBC consumers figure out how to be more green with simple changes to their lifestyle and then share these stories on the Green is Universal Page. Some Facebook users will receive coupons for their efforts, too, and the company is also hoping to raise monies for wildlife restoration through the Page.

Clorox has created a Page for its Green Works line of natural cleaning products and has more than 99,000 Likes. The Page offers cleaning tips, information and opportunities for fan interaction; the company is very active in conversation with Facebook fans on the Wall. Clorox is taking the opportunity to promote its products here, preview products, provide safety information, get feedback and help users participate in green-related sweepstakes.

Cisco's One Million Acts of Green has a Facebook Page that is part of a larger web effort aimed at preventing climate change. The Page's 1,400 fans have a chance to make a pledge to be more green themselves, take polls, learn tips and generally get involved.

Greenpeace itself provides a quality counterpoint to corporate environmental marketing efforts, in that it has done a smart job of harnessing Facebook users around its campaigns. It has Pages in multiple countries and the Greenpeace International Page has 671,000 Likes — a notably higher number than company-driven green Pages. The group's landing Page is a tab called Unfriend Coal that asks visitors to urge Facebook to stop using coal-generated power. And it has previous successes, like its efforts to pressure confectioner Nestle to move away from environmentally-damaging palm oil suppliers.

ISA 2011: How Will Small and Medium Social Game and App Developers Grow on Facebook Next Year?

Posted: 04 Nov 2010 09:30 AM PDT

January 25th | San Francisco

A few big social game developers, like Zynga and Playfish, might seem to be the big winners on the Facebook Platform so far. But there is both a range of successful smaller gaming companies and a healthy group of non-gaming applications doing well alongside the biggest players. In fact, even as the largest incumbents have lost users or stayed flat over the past year, many others have grown.

Fueled by Facebook’s ongoing expansion around the world, improving social game and app product quality, and increasingly sophisticated techniques of making money through virtual goods, the ecosystem is continuing to offer opportunities to smaller players and newer entrants. Here’s a quick look at some of the lesser known companies that have been building successful social app and game businesses on Facebook this past year.

But how will small and medium developers grow in 2011, given the rising cost of user acquisition and changes to Facebook’s viral channels in 2010? We’ll be examining what these and other developers have done to make their applications succeed despite a changing platform environment at Inside Social Apps InFocus 2011, our January conference looking at opportunities and uncertainties affecting social apps and games.

6 Waves

Using its own simple quizzing and gifting apps as starting points for cross promotion, the developer has morphed into a publisher of games from other developers around the world. While its own apps bring in 2.56 million daily active users and 30.8 million monthly active users, the other ones it publishes add up to 6.9 million DAU and 35 million MAU.

Kabam

Having started life making television and sports applications, it transitioned into social gaming late last year, and has found big revenue streams in more traditional-style games like Kingdom of Camelot, even though it’s relatively small in terms of traffic, at 938,000 DAU and 10.3 million MAU. Kabam has grown from just over 20 to nearly 200 employees in 2010 alone.

Booyah

The company is one of a few to have hits on both mobile and social. MyTown’s self-reported 3.3 million players make it one of the larger location-based games on the iOS platform. Nightclub City has a solid 930,000 DAU and 6.41 million MAU on Facebook and has distinguished itself in the industry as a high-quality game.

Digital Chocolate

Founded by industry veteran Trip Hawkins in 2003, the company focused on casual and mobile gaming for much of its history. But it spent the first part of the year launching titles on Facebook, and hit paydirt with city simulation game Millionaire City. It is now the tenth-largest developer on Facebook, with 17.9 million MAU and around 3 million DAU, and it is busy rolling out newly-themed versions of its hit, with titles like Hollywood City and Vegas City.

Wooga

The German company only launched at the beginning of this year, but it has put together a quick string of successes, with its three games – Bubble Island, Monster World, and Brain Buddies – reaching 11.7 million MAU and 1.94 million DAU. Wooga remains the largest social game developer (by MAU) based in Europe.

Microsoft

While not at all a startup, Microsoft is a good example of an established company with an existing service that has managed to find more usage through Facebook. Its Windows Live Messenger application added Facebook integration earlier this year that allowed users to share information between the two services, and it has since climbed to 8.51 million DAU.

RootMusic

The company’s BandPage application allows musician to add highly customizable applications to their Pages, stream music post photos and videos to users news feeds, and more. The app, which includes a premium version, is bringing in a total of 407,000 DAU and 8.77 million MAU.

There are a long list of other developers that have made notable breakthroughs this year, ranging from established app developers who have transitioned to focus on social gaming, to others who have carved out user bases for other types of niches - SlideRockYouLOLappsMindJoltPopcapCausesiLikeTripAdvisor, 50 Cubes, ZipZapPlay, and more.

The Inside Social Apps agenda will cover the most salient issues facing developers of all sizes, including monetization on Facebook in a world shaped by Credits, emerging trends in mobile gaming, and the promise and opportunity of other social platforms.

Join us at ISA on January 25, 2011 to learn and connect alongside today’s leading entrepreneurs working in social apps and games.

Who’s Speaking?

We're honored to present the following confirmed speakers at Inside Social Apps InFocus 2011:

  • Atul Bagga, VP Equity Research, Games, ThinkEquity
  • Bill Gossman, CEO, hi5
  • Bret Taylor, CTO, Facebook
  • Deborah Liu, Commerce Product Marketing, Facebook
  • Eric Chu, Group Manager, Android Platform, Google
  • Jason Oberfest, VP Social Apps, ngmoco:) (now part of DeNA)
  • Kevin Chou, Co-founder and CEO, Kabam
  • Manu Rekhi, GM Games, Content, and Platform, MySpace
  • Peter Relan, Executive Chairman, CrowdStar
  • Raph Koster, Former President, Metaplace; VP Creative Design, Playdom (now part of Disney)
  • Rex Ng, Co-founder and CEO, 6waves
  • Rick Thompson, Co-founder, Playdom (now part of Disney), and Investor
  • Sean Ryan, EVP and GM Games, News Corporation
  • Sebastien de Halleux, Co-founder and COO, Playfish (now part of Electronic Arts)
  • Vish Makhijani, SVP Business Operations, Zynga
  • Eric Eldon, Editor, Inside Network
  • Justin Smith, Founder, Inside Network

Register Now

Inside Social Apps takes place on January 25, 2011, and a full agenda will be announced shortly. Keep an eye on InsideSocialApps.com for more information.

The Facebook Global Monitor, November 2010 Edition, is Now Available

Posted: 04 Nov 2010 08:28 AM PDT

We’ve just released the November 2010 edition of the Facebook Global Monitor through Inside Facebook Gold.

The Facebook Global Monitor is our data report tracking Facebook's audience growth around the world, and now includes an expanded leaderboard and country profiles for over 60 new country markets that are seeing Facebook adoption and growth.

The Global Monitor tracks Facebook’s international metrics, and provides both historical data and forward-looking projections to enable developers, marketers, and analysts to spot trends and opportunities.

Each month, the Facebook Global Monitor provides the latest comprehensive data on the expansion of Facebook's audience in approximately 100 global markets. It also includes alerts on breakout and cooling markets, and our latest in-house projections on Facebook's growth in each country 30 days, 90 days, and 12 months into the future. See the full table of contents below.

All data in the report are based on primary research by Inside Network using data from Facebook, and each section is designed to elucidate key actionable trends. In addition to the Facebook Global Monitor, membership to Inside Facebook Gold includes monthly editions of the Global Monitor, in addition to access to our other data reports on Facebook’s top languages, user demographics, and more.

We believe big opportunities exist for developers and marketers to reach and engage the Facebook audience in these rapidly emerging and expanding markets. As always, we’ll continue to use data from the Facebook Global Monitor data as a foundation for our global growth coverage here on Inside Facebook, but if you’re looking for even more numbers, please check out Inside Facebook Gold.


The Facebook Global Monitor

Tracking Facebook in Global Markets

November 2010

Contents

I. Introduction: The Year That Facebook Went Global

II. Global Market Report

1. Audience Size Today

2. Fastest Growing Audience

  • Last 12 months
  • Last 90 days
  • Last 30 days

3. Market Penetration Today

4. Largest Market Penetration Increases

  • Last 12 months
  • Last 90 days
  • Last 30 days

III. Emerging Market Analysis

1. Growth Projections

  • Next 30 days
  • Next 90 days
  • Next 12 months

2. Technical Alerts

  • Breakout Markets: Last 90 Days
  • Cooling Markets: Last 90 Days

IV. Regional Summaries

1. Africa

2. Asia / Pacific

3. Europe

4. North America

5. South America

V. Major Country Market Updates

1. Argentina

2. Australia

3. Austria

4. Bahamas

5. Bahrain

6. Bangladesh

7. Belgium

8. Bolivia

9. Bosnia & Herzegovina

10. Brazil

11. Bulgaria

12. Canada

13. Chile

14. China

15. Colombia

16. Costa Rica

17. Croatia

18. Cyprus

19. Czech Republic

20. Denmark

21. Dominican Republic

22. Ecuador

23. Egypt

24. El Salvador

25. Finland

26. France

27. Germany

28. Ghana

29. Greece

30. Guatemala

31. Honduras

32. Hong Kong

33. Hungary

34. Iceland

35. India

36. Indonesia

37. Ireland

38. Israel

39. Italy

40. Jamaica

41. Japan

42. Jordan

43. Kenya

44. Kuwait

45. Lebanon

46. Lithuania

47. Luxembourg

48. Macedonia

49. Malaysia

50. Maldives

51. Malta

52. Mauritius

53. Mexico

54. Morocco

55. Netherlands

56. New Zealand

57. Nicaragua

58. Nigeria

59. Norway

60. Oman

61. Pakistan

62. Palestine

63. Panama

64. Paraguay

65. Peru

66. Philippines

67. Poland

68. Portugal

69. Puerto Rico

70. Qatar

71. Romania

72. Russia

73. Saudi Arabia

74. Serbia

75. Singapore

76. Slovakia

77. Slovenia

78. South Africa

79. South Korea

80. Spain

81. Sri Lanka

82. Sweden

83. Switzerland

84. Taiwan

85. Thailand

86. Trinidad and Tobago

87. Tunisia

88. Turkey

89. Ukraine

90. United Arab Emirates

91. United Kingdom

92. United States

93. Uruguay

94. Venezuela

95. Vietnam

VI. Emerging Country Market Updates

1. Afghanistan

2. Albania

3. Algeria

4. Angola

5. Antigua

6. Armenia

7. Azerbaijan

8. Bahrain

9. Belarus

10. Belize

11. Benin

12. Bhutan

13. Botswana

14. Brunei

15. Burkina Faso

16. Cambodia

17. Cameroon

18. Democratic Republic of Congo

19. Republic of the Congo

20. Djibouti

21. Dominica

22. Fiji

23. Gabon

24. The Gambia

25. Georgia

26. Grenada

27. Guyana

28. Haiti

29. Kazakhstan

30. Kyrgyzstan

31. Laos

32. Lesotho

33. Liechtenstein

34. Macedonia

35. Madagascar

36. Malawi

37. Maldives

38. Mali

39. Malta

40. Mauritania

41. Moldova

42. Monaco

43. Mongolia

44. Montenegro

45. Mozambique

46. Namibia

47. Nepal

48. Niger

49. Papua New Guinea

50. Rwanda

51. Saint Kitts and Nevis

52. Saint Vincent and the Grenadines

53. San Marino

54. Senegal

55. Seychelles

56. Sierra Leone

57. Suriname

58. Swaziland

59. Tanzania

60. Pakistan

61. Togo

Join to download the report at Inside Facebook Gold.

Facebook Wins Another News Feed Patent

Posted: 04 Nov 2010 07:50 AM PDT

Facebook has won a patent for creating a personalized feed of stories for its users, giving the company its seventh this year. It’s the second news feed related patent the company has been awarded so far. You can see the approved patent filing here.

The patent covers how Facebook presents status updates with multiple friends involved (see the drawing excerpted from the patent above). So for example, it might cover how Facebook shows in a news feed story that a friend attended a concert with a few other friends or added a photo to another friend’s profile.

When Facebook originally filed for the patent in the fall of 2006, it was just a month before the company launched its news feed. It argued at the time that as more and more users joined the social network, the amount of information it would produce would become overwhelming. So the company needed a way to consolidate and organize the most important items for each person, especially if it involved several of their friends.

Facebook also won a second patent this week for how it confirms whether a user is part of a group, workplace or school.

The company began collecting patents earlier this year, more than four years after it started applying for them. It also paid about $40 million to acquire very early social networking patents originally given to Friendster.

Like Google, Facebook seems to acquire patents defensively, instead of using them to pressure other companies to desist or pay license fees. The company hasn’t publicly instigated any patent disputes yet, unlike more famously litigious Silicon Valley companies such as Apple. Founder Mark Zuckerberg alluded to this strategy in an interview last month with TechCrunch, when the blog asked him about its recently awarded patent on location-enabled status updates.

While he wouldn’t comment on Facebook’s approach to IP rights directly, he did say:

Zuckerberg: I mean, you can see what we've used patents for in the past.
Jason Kincaid, TechCrunch blogger: I can't remember a time you've used…
Zuckerberg: Exactly.
Kincaid: …it offensively.

When Facebook eventually comes to the public markets for an initial public offering, it will want to ensure that other companies can’t make intellectual property claims and sue it for licensing revenues.

That said, it is a different story when it comes to trademarks. Facebook has been quite active in pressuring developers or marketers from using the company font or the words “Face” or “Book” too egregiously.