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How Facebook Gets to 7 Billion

Below&;s my latest column from MediaPost. Clearly it&39;s not for everyone. It&39;s funny, as I&39;m&;a day late in posting this while in Atlanta, the tweets have been positive (those I&39;ve seen at least) while the comments are much more negative. My next column will be a response to those comments, as I want to hear more from them – not more negative feedback (though that comes with the territory) but more on WHY they are so adamantly opposed to social media while reading the Social Media Insider.

Separately, you can read my review of The Facebook Effect here, or just scroll on down to the next post if you&39;re on the homepage.

Facebook Breakfast 014&0160;Photo from Gotham&0160;Media Ventures: Adam Eland, me, Jerry Spiegel, David Kirkpatrick, Ian Spalter (photo credit: Valerie Milkins, RGA)

On to the column:

How Facebook Gets to 7 Billion

"Ubiquity" was one word that struck me when David Kirkpatrick, author of "The Facebook Effect," kept mentioning it at a Gotham Media Ventures breakfast panel last week. The other was "China."

Those were the answers. The questions, if you summon Johnny Carson&39;s Carnac, were, respectively, "What is Facebook&39;s goal?" and "What is Facebook&39;s biggest obstacle in achieving its goal?"

China may be Facebook&39;s single biggest obstacle in growing from 500 million users to 7 billion and beyond as it tries to gain adoption by every single person on the planet. Yet there&39;s a bigger obstacle collectively: the other 4 billion people who are neither currently using Facebook nor living in China. How will Facebook colonize the rest of the world?

The question came up on the panel, and I had an answer. By the time Facebook has exhausted other courses of pursuing growth, it&39;s going to go for its most ambitious marketing push yet: Facebook will give every person alive age 13 and up a phone.

Facebook will need to do this once its growth levels off, as it reaches somewhere between 1 and 2 billion users. Once it has signed up between 15%&0160; to 30% of the world&39;s population, one of the most ambitious companies the world has known will need the mother of all stimulus packages. Here&39;s how the phone will serve its ultimate mission:

Doing more with Zero:&0160;Facebook already has a service called&0160;Zero(0.facebook.com). Launched with more than 50 mobile carriers worldwide last month, it allows consumers from Anguilla to Uganda to access a text-only version of Facebook without incurring data charges. Viewing photos incurs data costs, but for no charge at all, users can post status updates and comments, send and receive messages, view the News Feed, and write on friends&39; Walls. Partnering with carriers this way still will only reach mobile subscribers, which falls short of Facebook&39;s ambition.

The mobile flip:&0160;While Facebook reports over 100 million users of its mobile services today compared to an estimated 500 million users overall, the ratio of online to mobile users will quickly flip, especially thanks to carrier partnerships. That flip is already happening elsewhere. For instance, Mixi, Japan&39;s leading social network, has three-quarters of its users accessing it from mobile devices.

One mobile per child:&0160;One Laptop Per Child is already pursuing $99 tablets, and the concept of "one mobile per child" is being discussed in various pockets of the web. What would be the cost of getting some kind of mobile device running Facebook in the hands of everyone? That&39;s the ultimate realization of Facebook&39;s mission to "make the world more open and connected."

Voices that care:&0160;If Facebook pulled off the feat of finding a scalable way to get billions of Facebook-enabled phones out to the world, it would still need to figure out the phone part. Here&39;s where the next piece of the puzzle fits in: Facebook acquires Skype to enable free calls among handset users. That&39;s just the beginning, as Facebook will pioneer voice translation software to allow someone speaking Ndebele in Zimbabwe to communicate with a Mandarin speaker in China.

There are still countless questions as to how this would work, and the business model is hardly clear-cut. Yet at some point, Facebook&39;s growth will slow and everyone will wonder what&39;s next. For Apple, the answer was the iPod, and then the iPhone. For Google, it&39;s Android. For Facebook, it will also be mobile, but with even greater ambitions. Mark Zuckerberg&39;s one person who can make a goal like gaining top market share in China seem trifling compared to the bigger picture.

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  • Avatar
    June 24, 2010

    Hi David:
    An interesting partnership for Facebook, or stake, would be Nokia – which has the low-end of the market. They already own the carrier relationships to bring this idea to life. My view is that Facebook won’t be the only gateway; instead, the simplest to services, richer access and features. Facebook plus (more) could be a revenue model.
    Lots of great stuff here. Looking forward to more discussion.

  • Avatar
    June 24, 2010

    Great insights here. Amazing to see Facebook’s ascent to the top. For the average person there are so many question marks surrounding how they did it, but you start to reveal soe of the secrets to us.


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