Facebook Looking to Capitalize on Growth in Arab World
February 24, 2010 - 6:16 AMFacebook Inc. expects Mideast user numbers to shoot significantly higher in the coming months, as more people follow their friends onto the site.
Facebook said it hopes the deal with Connect Ads will give it better exposure to advertisers in the region. The Cairo-based advertising booker already handles sales for Microsoft Corp.'s MSN regional portals and other local sites.
"They have the reach and ... they have the connections," said Trevor Johnson, Facebook's head of strategy for Europe, the Middle East and Africa.
The tie-up with an outside ad sales provider mirrors a strategy Palo Alto, Calif.-based Facebook has used in other emerging markets, such as Eastern Europe and Asia, Johnson said in an interview.
It also signals the potential the social networking site sees for the young and growing Arab market, where it counts 10 million regular users.
The company expects Mideast user numbers to shoot significantly higher in the coming months, as it has in other markets, as more members follow their friends onto the site.
"The opportunity is massive ... we're very much at a tipping point," Johnson said. "Now is the time where there are enough people where it makes brands sit up and listen."
For now though, the Middle East represents a small fraction of Facebook's business. The company has more than 400 million active users worldwide. It says about 70 percent of those are outside the United States.
Financial terms of the deal were not disclosed. The initial partnership lasts for three years.
The companies said it was too early to discuss sales targets. Connect Ads managing director Mohamed el-Mehairy said only that he expects "high revenues" from the deal given the site's explosive growth.
Other major Internet companies are also ramping up their operations in the Arab world.
In August, Yahoo Inc. bought one of the region's largest online portals, Maktoob, for an undisclosed sum.
Two weeks later, Google Inc. launched an online question-and-answer tool it said was designed to boost the amount of Web content available in Arabic. It already offers Arabic-language search pages, and its Blogger publishing platform is popular in the region.
(Copyright 2010 Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)