Facebook News: Asia-Pacific May Help With The Platform's Plan of Monetizing Apps
Mark Zuckerberg and his Facebook team is looking into a more improved plan that will help the platform gain more revenue this year. It turns out that regions within the Asia-Pacific circle may be able to help lay out Facebook's plans.
According to The Country Caller, Aegis Capital has kicked off coverage of Facebook's stocks. A Buy rating has been placed and a $150 price tag on the stock. Aegis pointed out that the biggest social media platform on the Internet today has improved in terms of stock prices.
However, the firm also noted that there is a problem with advertising. Aegis Capital analyst Victor Anthony then suggested that Facebook should monetize Instagram and other messaging apps to make up for the advertising issue.
Currently, most of Facebook's revenue is gathered from Canada and the United States. While this is true, the two countries combined only make up 13 percent of the platform's monthly active users. Things may take a huge turn once Facebook starts applying the plan to monetize Messenger, Instagram, and other messaging apps.
According to FOX Business, Southeast Asia is the big fish when it comes to opportunities that Facebook can grab. Over 30 percent of the region's online commerce happens on social media, consulting firm Bain & Co. has reported. Compared to the U.S. that only has a 7 percent figure in terms of online commerce, there is a massive gap that Asia-Pacific can fill in.
The outlet further explains that Southeast Asia's social commerce generally takes place through messaging apps such as Line or WhatsApp. Products or items will first be tracked down on Instagram or Facebook and these items will then be forwarded through a messaging app.
Facebook has reported that its Messenger is a hit in the Asia-Pacific region. Thailand reportedly has twice the number of users that send messages involving businesses through Messenger. This is proof that messaging apps can boost the interaction of business-minded people.
As messaging app users and business owners interact among each other, Facebook will then roll out various tools that should help businesses reach more people and in turn will ask for a certain fee. This plan is similar to Line's tool called Line@. Over 2 million businesses in Southeast Asia are making use of Line@.
There are 629 million monthly active users in the Asia-Pacific region and this is something that Facebook can take advantage of. As more people use Messenger, Instagram, and other apps that the platform has, there are also more chances to generate revenue from the social commerce interactions within the apps.