16 Strengths
• Attractive, well-established social-networking platform with a global presence • Better services and multi-functionality for users • Improved integration capabililty with third-party online products, apps and services • Multiple language interfaces • Proven ability to unite masses and disseminate public information when required • Has reached critical mass in the white-collar population • Provides a unique platform for freedom of speech • Bridging the digital divide in the region • Social inclusion power • “Early adoption by the tech-savvy mass • “Heavily integrated into business brands, TV series, talk shows, broadcasting stations and rival local social networks
Weaknesses • Extremely low click-rate on adverts • Western insensitivity to religious and cultural concerns for MENA users • Information privacy concerns for what is - for the most part - introverted societies in MENA
Opportunities • Massive untapped parts of the population - blue-collar workers, the middle classes and women
• Growing app-thirsty smartphone and tablet market • Extension of social networking services into governance, entrepreneurship promotion and advertising
• Partnering with regional operators, mobile and fi xed • Partnering with app and software companies wanting to launch in MENA, like VoIP service Skype’s recent integration with Facebook
Threats
• Rival social networks with local brands • Discouragement via state interference, banning and overt surveillance • Upcoming rival global brands such as Google+ • Skype integration into Facebook potentially causing disputes with local telecoms regulators
Figure 5: Facebook in MENA, SWOT analysis
in online Arabic content and Web pages, which currently stands at 1.5 per cent of the total, a very small figure when you consider that the Arab population accounts for 5 per cent of the total world population.
Informa viewpoint Growth in the future There is still ample room for Face- book growth in MENA. The average population penetration is at 14.2 per cent: All but three of the countries have yet to pass 30 per cent, while a large proportion has not even passed 10 per cent. The increased take-up of smartphones and online illiteracy will guarantee, for the medium term, that Facebook continues to grow in the medium term in the region. Informa estimates that it will take several years before Facebook truly becomes mass-market for MENA’s estimated 300 million population. With the improvement of broad-
band and online freedom in the re- gion, the social-networking platform will grow gradually over an extended
period. Apart from the documented bans on the website in certain countries, cases of Facebook losses appear to be sporadic, and new net additions will smooth out drops in subscriber numbers.
Ecomomic prosperity unpenetrated
Egypt 7 7 Tunisia 7 5 Morocco 6 7 Saudi Arabia 8
6
Algeria 6 8 Kuwait 8 4 Iraq
5
Palestine UAE
7 6 8
9
Jordan 5 5 Syria 6 9 Oman
7 6 1
Bahrain 6 3 Yemen 4 9 Lebanon 6 4 Qatar 9 3 Mauritania 5 9 Iran
6
population penetration 5
7 7 6 4 7 5 8 4 7 7 9 9 3 5 9 4
10
Afghanistan 3 10 Libya 4 9
Competition will be complementary Its global connectivity provides Facebook with an opportunity in MENA, playing to its advantage in competition with regional social-networking platforms like pan-regional Yahoo Maktoob’s As7ab; country-specific networks like the multiple “Jeeraan” platforms in some Arab cities; and services provided by telecoms operators like Etisalat’s Weyak portal, or Du’s Anayou platform, in the UAE. Each of these regional services has its
own distinct features and appeal for its own market. For example, Jeeraan has a dedi- cated music platform, Bandoora; and Yahoo Maktoob, having launched a mobile website for its users, is now launching a VOD service to deliver content from popular Arabic TV series, movies and music videos, etc. Social networks with the best online
services and greater functionality will soon supersede this fragmentation of networks. Facebook is in a prime position to make its mark in MENA, evidenced by the fact that all other social networks prominently feature Facebook buttons on their platforms. Informa believes that the role of regional networks will eventually be to complement – rather than compete with – Facebook. ■
www.intelligencecentre.net
Facebook Internet Online Recent user
10 10 9 8 7
10 9
10 8 9 9
10 8 7
10 9 7
9 1
10 6 6 7 6 2 5 5 2 1 2 3 1 2 2
-1 1
1 -3 Facebook Freedom Growth activity
diversifi cation 9
9 6 5 8 5 3 3 6 3 4 3 6 8 4 1 4
5 2 0 5 2 2
2 5
Figure 6: MENA Facebook growth potential scorecard Middle East Market Review | November 2011
48 44 41 40 39 36 36 36 35 34 34 34 33 33 31 30 30 28 27 18
Note: 10 is the highest score; -5 the lowest Source: Informa Telecoms & Media Total
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