The Strategist

Facebook to Compete with LinkedIn

12/11/2015 - 14:48

Facebook began testing a new professional version of its social network, having already attracted more than 300 companies. In the future, Facebook plans to introduce paid subscription on certain services, worth “a few dollars a month”.
In just a few months, the market of professional social networks will get a new major player: in 2016, the company Facebook Inc. plans to launch a project called «Facebook at work». As expected, the pro-version of the popular social network will compete with LinkedIn Corp. and Monster Worldwide in the global market of business online communication, the volume of which IDC experts earlier estimated as $ 6 billion a year.

By its appearance and options, Facebook at work is almost identical to normal. Users will see a newsfeed, “like” other people's posts, create individual and group chats to communicate with subordinates and colleagues, share files, organize groups for joint projects, send mass invitations to corporate events and so on.

"I would say that 95% of what has been created by us for Facebook, will be available in Facebook at work», - told Julien Codorniou, Director of global platform partnerships at Facebook. Games will be among few exceptions, so Candy Crush at work will be unavailable.

At the same time, Facebook at work will open new exclusive fee-based services. According to Codorniou, the sum is "a few dollars a month."

Security will be the key issue in Facebook pro. "Workers' accounts are completely isolated from personal Facebook accounts, so that even when you run both versions on the same computer, tablet or smartphone communication will be carried out completely independently, what will eliminate leak of sensitive corporate information.

Beta testing of Facebook at work was launched in early 2015. Currently, employees of 300 major companies opened accounts in the new social network. Among them are brewing giant Heineken, bank Royal Bank of Scotland, jewelry company Stella and Dot, etc. In the next few months, the new social network will welcome Club Mediterranee SA, the French tour operator and owner of chain resort hotels in different countries. According to the company, Facebook at work is planned to connect about 13 thousand of its employees over the summer.

At the end of the third quarter of 2015, the average monthly number of active Facebook users has grown to 1.55 billion. In September 2015, number of users using Facebook every day increased by 17% and exceeded 1 billion (1.01 billion); earlier this figure was only 968 million.

In July-September 2015, revenues of Facebook Inc. grew at an annual rate of 41% - to $ 4.5 billion versus $ 3.2 billion a year earlier. At the same time, the company’s net profit increased by 11% - to $ 891 million. Mobile advertising has brought 78% of income - a year ago for the same reporting period, it accounted for 66% of revenue.