THE ROAD TO HALF A BILLION graphiti

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Launched February 2004 Spanish and French launch German launch Opens office in India 21 additional languages launch FACEBOOK USERS 1 million 5.5 mil. 12 mil. 20 mil. 50 million 100 million 200 million 500 million 2004 2005 2006 2007 2008 2009 2010 Opens headquarters for Europe, Middle East, and Africa in Dublin Facebook Zero launches in 45 countries 12-MONTH GROWTH MARKET PENETRATION Argentina Australia Austria Bangladesh Belgium Bolivia Bosnia and Herzegovina Brazil Bulgaria Canada Chile China Colombia Costa Rica Croatia Czech Republic Denmark Dominican Republic Ecuador Egypt El Salvador Estonia Finland Germany Ghana Greece Guatemala Honduras Hong Kong Hungary Iceland India Indonesia Iraq Ireland Israel Italy Jamaica Japan Jordan Kenya Kuwait Lebanon Lithuania Malaysia Mexico Morocco Netherlands New Zealand Nicaragua Nigeria Norway Oman Pakistan West Bank and Gaza Panama Paraguay Peru Philippines Poland Portugal Romania Russia Saudi Arabia Serbia Singapore Slovakia South Africa S. Korea Spain Sri Lanka Sweden Switzerland Taiwan Thailand Tunisia Turkey Ukraine United Arab Emirates United Kingdom United States Uruguay Venezuela Vietnam France 50 100 150 200 250 300 350 % 0 0% 5% 10% 15% 20% 25% 30% 35% 35% 40% 45% 50% 55% 60% 70% 65% Regions North America Latin America Europe Australasia Africa Middle East 143 million 25 10 1 2 Audience size Graphiti 20 technology review January/February 2011 Graphiti 21 www.technologyreview.com Making Friends Facebook still has lots of room to grow. W ith three-quarters of its 500 million users outside the United States, Facebook has spread to every corner of the globe. But there are still plenty of people who have yet to be lured into the social network—and could be soon. As this graph shows, Facebook is only just beginning to ripple through the popula- tions of such large countries as India and Brazil. It is also still a minor player in Japan and South Korea. And it is banned in China, the biggest Web market of all. For most of its first six years, Face- book was largely able to sit back and let its audience expand naturally, thanks to the power of the network effect. But it now has to work harder to establish a presence in markets like Japan and South Korea, whichpartly because those coun- tries already have successful homegrown Web serviceshave been hard for west- ern companies to crack. However, one success story suggests that the company can do well in East Asia. In Taiwan, which also has a well- established Web ecosystem and is similar to Japan and South Korea in terms of broadband connectivity and technical literacy, nearly a third of all residents and half of all Internet users have a Face- book account. One factor in the growth has been a ready supply of social games for Taiwanese to play on Facebook. Such games are often created by developers in mainland China, even though the govern- ment prevents most of their countrymen from playing them. —Matt Mahoney SOUTH KOREA The world’s most connected country has resisted western Web companies. Facebook shows signs of breaking through. EASTERN EUROPE Having reached saturation in most of Western Europe, Facebook is spreading rapidly through countries that were in the Soviet Bloc. THE ROAD TO HALF A BILLION Over the past two years, Facebook has been solidifying its international presence. It has crowdsourced the translation of its site into dozens of languages, opened new offices abroad, and launched Facebook Zero, a stripped-down version aimed at countries where people are more likely to connect using a cell phone than a PC. INDIA Last year, Facebook surpassed Orkut as its most popular social network. INDONESIA The Muslim nation is now Facebook’s second-largest audience. TAIWAN This country and Hong Kong offer clues about how popular Facebook could become in mainland China. CHINA The Great Firewall stymies Facebook’s efforts to reach one-fifth of the world’s population. U.S., U.K., AND CANADA These countries still account for a third of Facebook’s audience and, most likely, the vast majority of the company’s revenue. ICELAND Facebook has benefited from intensified network effects in a small, densely settled nation. Information graphic by TOMMY McCALL and MATT MAHONEY Sources: Audience data is from Inside Net- work’s Facebook Global Monitor report for November 2010; 2009 population data from the World Bank was used to calculate market penetration. graphiti

Transcript of THE ROAD TO HALF A BILLION graphiti

Launched February 2004

Spanish and French launch

German launch

Opens o�ce in India

21 additional languages launch

FACEBOOK USERS

1 million 5.5 mil. 12 mil. 20 mil.50 million

100 million200 million

500 million

2004 2005 2006 2007 2008 2009 2010

Opens headquarters for Europe,Middle East, and Africa in Dublin

Facebook Zero launchesin 45 countries

12

-MO

NT

H G

RO

WT

H

MARKET PENETRATION

Argentina

Australia

Austria

Bangladesh

Belgium

BoliviaBosnia and Herzegovina

Brazil

Bulgaria

Canada

ChileChina

Colombia

Costa Rica

Croatia

Czech Republic

Denmark

Dominican Republic

Ecuador

Egypt

El Salvador Estonia

Finland

GermanyGhana

Greece

Guatemala

Honduras

Hong Kong

Hungary

Iceland

India

Indonesia

Iraq

Ireland

Israel

Italy

JamaicaJapan Jordan

KenyaKuwait

Lebanon

Lithuania

Malaysia

Mexico

Morocco

Netherlands

New Zealand

Nicaragua

Nigeria

Norway

OmanPakistan

West Bank and Gaza

Panama

Paraguay

Peru

Philippines

Poland

Portugal

Romania

Russia

Saudi Arabia

Serbia

Singapore

Slovakia

South Africa

S. Korea

Spain

Sri Lanka

SwedenSwitzerland

Taiwan

Thailand

Tunisia

Turkey

Ukraine

United Arab Emirates

United Kingdom

UnitedStates

Uruguay

Venezuela

Vietnam

France

50

100

150

200

250

300

350%

0 0% 5% 10% 15% 20% 25% 30% 35%35% 40% 45% 50% 55% 60% 70%65%

Regions

North America

Latin America

Europe

Australasia

Africa

Middle East

143 million

25

10

1

2

Audience size

Graphiti20 technology review January/February 2011 Graphiti 21www.technologyreview.com

Making FriendsFacebook still has lots of room to grow.

W ith three-quarters of its 500 million users outside the United States,

Facebook has spread to every corner of the globe. But there are still plenty of people who have yet to be lured into the social network—and could be soon. As this graph shows, Facebook is only just beginning to ripple through the popula-tions of such large countries as India and Brazil. It is also still a minor player in Japan and South Korea. And it is banned in China, the biggest Web market of all.

For most of its first six years, Face-book was largely able to sit back and let its audience expand naturally, thanks to the power of the network effect. But

it now has to work harder to establish a presence in markets like Japan and South Korea, which—partly because those coun-tries already have successful homegrown Web services—have been hard for west-ern companies to crack.

However, one success story suggests that the company can do well in East Asia. In Taiwan, which also has a well-established Web ecosystem and is similar to Japan and South Korea in terms of broadband connectivity and technical literacy, nearly a third of all residents and half of all Internet users have a Face-book account. One factor in the growth has been a ready supply of social games for Taiwanese to play on Facebook. Such games are often created by developers in mainland China, even though the govern-ment prevents most of their countrymen from playing them. —Matt Mahoney

SOUTH KOREA The world’s most connected country has resisted western Web companies. Facebook shows signs of breaking through.

EASTERN EUROPE Having reached saturation in most of Western Europe, Facebook is spreading rapidly through countries that were in the Soviet Bloc.

THE ROAD TO HALF A BILLIONOver the past two years, Facebook has been solidifying its international presence. It has crowdsourced the translation of its site into dozens of languages, opened new offices abroad, and launched Facebook Zero, a stripped-down version aimed at countries where people are more likely to connect using a cell phone than a PC.

INDIA Last year, Facebook surpassed Orkut as its most popular social network.

INDONESIA The Muslim nation is now Facebook’s second-largest audience.

TAIWAN This country and Hong Kong offer clues about how popular Facebook could become in mainland China.

CHINA The Great Firewall stymies Facebook’s efforts to reach one-fifth of the world’s population.

U.S., U.K., AND CANADA These countries still account for a third of Facebook’s audience and, most likely, the vast majority of the company’s revenue.

ICELAND Facebook has benefited from intensified network effects in a small, densely settled nation.

Information graphic by

TOMMY McCALL and

MAT T MAHONEY

Sources: Audience data is from Inside Net-work’s Facebook Global Monitor report for November 2010; 2009 population data from the World Bank was used to calculate market penetration.

graphiti