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Facebook Set To Reach 2 Billion Users

Summary

Facebook is approaching 2 billion active users.

Bears think the saturation of ad load and competitors like Snapchat will hinder growth.

Facebook’s recent investments in emerging markets will unlock more room for growth.

Recent SA articles have made back-and-forth arguments on the growth potentials of Facebook (NASDAQ:FB).

While a faction thinks the saturation of ad load is a good harbinger of peak market penetration, other parties feel there are more opportunities to grow from other platforms such as WhatsApp and Instagram.

Amidst all these back-and-forths, everyone seems not to have noticed a missing piece in this growth puzzle.

Emerging markets? Yes, emerging markets. Africa to be precise.

Mark Zuckerberg was in Africa last week and no one here on SA is talking about it. This is sad because I am Nigerian and I believe the next needle-moving change in bottom line growth will start its pounding works in emerging markets, with economies like Nigeria, Kenya, and South Africa leading the movement.

There are over 800 million people who lack internet connectivity in Africa.

Facebook's CEO, Mark Zuckerberg made his first trip to Sub-Saharan Africa, kick-starting Facebook's quest to unlock the hidden potentials in Africa.

In the last earnings call, Zuckerberg said:

One of the biggest opportunities to grow our community is in developing countries where connectivity is less advanced than what we take for granted here at home. So, over the past couple of years, we've been making steady improvement throughout to make them work regardless of the device or connection that people are using. We've also built a lightweight version of our Android app called Facebook Lite that's tuned to work on 2G networks and is now used by more than 100 million.

The SA community has been inundated with a series of data points indicating slowing growth for Facebook.

Facebook derives the bulk of its revenue from advertising. Therefore, getting more people on the platform is one of the catalysts for growing ad spend. How will Africa provide a solution?

The growth in the Africa tech culture

The African startup culture has evolved over the years to shoulder the responsibilities bestowed on it by the analysts, optimists and some crystal gazers of the world who believe there are untapped opportunities lurking in the continent.

I have found myself at the nexus of the numerous disruptive ideas that have consigned old power arrangements to an unexpected...


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