Facebook's official launch into the Australian market this month, behind the likes of Friendster which opened earlier in the year, Bebo and MySpace may suggest that the fight for social networking ad dollars is getting tight, but there will be enough to go round, claims the head of the Australian and New Zealand operations Paul Borrud.
"Some of the other social networking companies have done well and there is an opportunity for us to co-exist. We all have a specific role to play in the social media space," Borrud said. The local Facebook proposition is centered around "real information and real users sharing real information mostly around content and allowing a brand to be part of those conversations in an innovative way."
Local Australian Facebook users have surpassed the 5 million active user mark, and brands are turning onto the power of social networks locally which has neccesitated a local presence, Borrud said. "User numbers have grown, time spent has increased and page consumption has also increased with more than half of our users logging on every single day to the site. Brands and agencies are looking for ways to connect with users in a different way than just a standard banner or a standard impression around a click," he explained.
Borrud added that understanding how brands can have a relationship with that customer is a longer conversation and a difficult conversation to have without a local presence. "It's very important for us to support the market by having a local office here," he said. Borrud was previously regional VP of sales based in San Francisco.
Facebook has an established ad sales relationship with minority stakeholder Microsoft locally via NineMSN and DrivePM, which is not expected to change. Kerry McCabe, ninemsn's commercial director, said: "In line with Microsoft¹s commercial arrangements initiated with Facebook in 2008, ninemsn will continue to sell Facebook's display advertising inventory in the Australian market."
Borrud remains tight lipped on the identity of his new hires or how big the Sydney based local team will be although estimates are in the 6-10 range of sales executive positions. Advertised roles have included group sales manager, account executives, account planners and associate account manager. "As the business dictates we will be open to investing in different areas but right now its sales," he said.
New Dialogue's director of digital Callum O' Brien said that Facebook's local presence would help the long term education and evolution of the social networking market. "Australians are incredibly engaged in digital media, some research suggests that we are near the US in terns of that consumption. It poses an opportunity for Facebook and Friendster with 5.5 million on Facebook against the 12 million online that's incredible." He added that ³while clients always approach social networking with trepidation- as it establishes a two way conversation with your brand-they know they have to be in that space."
Borrud added that the brands that would most benefit from operating in this space were the ones that have, "big ears and are willing to listen to what consumers are saying about their brands. "
