Facebook is increasing in popularity each year, reaching 400 million members this year, and the rate of growth just keeps expanding exponentially.
In Taiwan alone, Facebook saw a growth rate of 2872% in only twelve months, and this trend was repeated in the Philippines with an explosive growth rate of 1027%. Translated into more than one hundred languages and projected to hit the one billion dollar revenue mark this year, Facebook is truly a force to be reckoned with.
If you think this social networking phenomenon is complacently enjoying its success, however, you’d be wrong.
Facebook recently announced its plan to take the Facebook Credits program from the beta testing phase into a network wide rollout, which will help unite all Facebook users on to one monetary system.
Facebook Credits will streamline transactions online as well as close an exchange rate gap that’s been holding Facebook’s profitability back in hyper-growth countries like those in southern Asia.
As it stands now, banner advertising doesn’t provide much of an investment return in the international market, and Facebook Credits stand to change that. If successful, the program has the potential to become the precursor to the first worldwide currency.
Large multinational corporations will stand to gain from the Credit program, practically ensuring that it will catch on quickly and easily perform up to expectations. No longer burdened by an unfair exchange rate, these companies will flock to Facebook in droves eager to take advantage of new market demographics combined with reasonable advertising rates.
The unprecedented opportunities facing these businesses and the relatively low cost of tapping into a whole new market will no doubt make Facebook an even larger marketing force in coming years.
Users, meanwhile, will be able to purchase credits from a single source and spend these credits on games and applications across the network. Facebook in turn will earn a 30 percent cut of the revenue on these sales, and the company is projected to show massive profits in late 2010 and early 2011 due largely in part to the Facebook Credits rollout.
While Facebook has been in the press lately more for privacy concerns than their credit program, you can expect big things from the company in the next several months. The implications of the Facebook Credit program spell out big changes for Facebook, and the only issue that remains to be seen is not if the program will succeed but instead how rapidly it will catch on among an already enthusiastic user base.