Facebook has hit 5m users in Australia.
According to Nielsen Netview they hit 5.07m users during the month of January.
These figures show Facebook is continuing to enjoy phenomenal growth in Australia – with over 300,000 new users in January alone.
Users are returning over 12 times a month, spending over 3 hours a week on the site.
Such engagement is astounding and would be seen as extremely positive to Facebook despite their mixed success in monetising the property.
To put this in perspective, according to Netview the average Internet user spends 15 months online per month … Facebook users spend 3 hours … so the average Facebook user is spending 20% of their total Internet time on the site.
It also means Facebook as a site has more users than the entire Yahoo!7 network, entire Fairfax Digital network, entire News Digital Media network, ebay, entire Bigpond/Sensis network, YouTube, Wikipedia and Fox Interactive Media.
With over 2b PIs per month even at an average CPM of 50 cents and 2 ads a page the site would be pulling in around $2m per month in revenues from AU.
Now, imagine Facebook could pull an average of $5cpm per ad unit – with 2 per page … that makes $2m potentially $20m.
This sort of potential must fuel the Bus Dev innovation at Facebook – the potential of the site if they can get the ad model right.
I think they need some help. Ad technology help. Maybe my humble co-author could be the answer to their problems. Could retargeting/behavioural targeting/time based buys be an answer that makes Facebook make sense for advertising?
I reckon it just might be …
Liam: Ya $5cpm would make FB a lot of money.
There are a few things that hold that back, most notably tradition and prestige.
FB just isn’t very prestigious, it has some very average content and for a bunch of people has about as much appeal as sponsoring the under 14s in Dapto.
It is a curiosity to me that social networks are generally not considered media because they are pretty pedestrian yet Today Tonight is considered media? It doesn’t get more pedestrian? Maybe the sunrise programme?
But over time yes advertisers will shift their view of what media is and social networking will be considered media.
The question is how long before that happens and will FB still be relevant?
Fashion is fickle and while FB provides utility and community, it is still fashionable.
Will twittle-dum be bigger than FB in two years? Probably.
Behavioural targeting is used by FB to monetise and it is a pretty reasonable clip around the world.