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Facebook report says the social network adds more than $200 million to the global economy.
SAN FRANCISCO: With 1.35 billion users of its Internet social network, Facebook would rank as the world’s second-most populous nation if it were a country.

While its users may populate only a virtual country, Facebook says it generates a lot of real economic activity – $US227 billion ($277 billion) worth of economic impact and 4.5 million jobs in 2014, according to a new study by consulting firm Deloitte & Touche that Facebook commissioned.

It found the social network contributed $US100 billion ($122 billion) to the US economy, generating 1 million jobs, $US11 billion ($13.4 billion) to the UK economy (154,000 jobs) and $US6 billion ($7.3 billion) to Australia (62,000 jobs).

The report looks at the businesses that maintain pages on Facebook as well as the mobile apps and games that consumers play on the site, and measures all the economic activity that result. It also considers the demand for gadgets and online connectivity services that are generated by Facebook.

When a company advertises to customers on Facebook, for example, some of the resulting sales can be directly attributed to the social network. When consumers donated $US100 million for research into amyotrophic lateral sclerosis during this summer’s Ice Bucket challenge, Facebook’s auto-play video ads were a key factor.

“People believe that technology creates jobs in the tech sector and destroys jobs everywhere else,” Facebook Chief Operating Officer Sheryl Sandberg told Reuters in an interview on Friday. “This report shows that’s not true.”

According to Sandberg, Facebook is helping create a new wave of small businesses in everything from fashion to fitness. She cited a group of young women in Bengaluru, India, who started a hair accessory business using Facebook and a mother in North Carolina who started the Lolly Wolly Doodle line of clothing, selling to customers through Facebook.

The report comes as many established industries are critical of Web startups such as ride-sharing service Uber and home-sharing service Airbnb. Critics contend that the services circumvent regulations and threaten established taxis and hotel businesses.

The report’s data will provide Sandberg with something to talk about when she travels to the World Economic Forum in Davos, Switzerland, this week. On Thursday, Sandberg will be on a panel alongside Google Executive Chairman Eric Schmidt and Microsoft CEO Satya Nadella about the future of the digital economy.

“We’re no longer in a place where large companies can create the jobs the world needs,” Sandberg said.

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Henry Sapiecha

 

DFAT advice to daughter

of dying man:

Use Facebook to source funds

BY HENRIETTA COOK
28 Apr, 2011 06:57 AM

Foreign Affairs officials told the daughter of a dying Australian man stranded in China to use Facebook to raise money for her father’s medical expenses.

The Department of Foreign Affairs and Trade bureaucrat included the suggestion in an email advising Canberra woman Tracy Woolley that the Federal Government would not help with her stricken father’s plight.

Ms Woolley’s father Thomas Barry Moore, a former air force serviceman, has been in a coma in a Chinese hospital for 118 days after suffering a stroke on December 31 in Zhengzhou in north-central China.

Ms Woolley contacted DFAT on January 4 asking for help because she could not afford to visit her father or cover the estimated $160,000 for his repatriation to Australia.

When it became apparent MrMoore was likely to remain in a vegetative state, she asked doctors to turn off his life support but was told ethical concerns prevented them.

Ms Woolley is currently sending the hospital $770 a week to keep her father alive but said she could not afford to meet these payments beyond next month.

On March 4, an official from the consular operations branch of DFAT sent Ms Woolley an email suggesting she collect money to cover medical expenses from online ”friends” who had joined a Facebook ”causes” page she created for her father.

”Perhaps [use] your friends on the social networking site you are using to alert people to your father’s plight may also be able to provide funds to further extend your father’s care,” the email said.

Earlier in the email he wrote, ”despite our best intentions and our embassy speaking with the hospital and Mr Zhang on many occasions, there is no further action we can take to improve your father’s situation.”

DFAT has not shifted its stance on Mr Moore since The Canberra Times broke the story of the man’s plight on Tuesday. The department now says Ms Woolley never made a request for financial assistance, despite emails revealing otherwise. A DFAT spokeswoman said financial assistance for medical evacuations was only provided in special situations. She said these were limited to, ”medical evacuations where medical facilities are inadequate to treat their condition satisfactorily or their condition is so severe there is no time to consider other funding sources”.

A spokeswoman from the Department of Veterans’ Affairs said while she couldn’t comment on Mr Moore’s case for ”privacy reasons”, veterans who travelled overseas should take out insurance.

Ms Woolley said her father had funeral insurance and was covered for six weeks of medical care, excluding repatriation, by the Henan University of Technology, the place where he had worked for two years as an English teacher. Ms Woolley said her father was unable to take out travel insurance because he had lived overseas for more than a year.

RSL NSW offered to pay for airfares to help Ms Woolley travel to China but she asked that the money be allocated to his medical expenses instead. ”I said that was very nice but I need more than that. My father would never have wanted what is happening to him.”

Sourced & published by Henry Sapiecha

Visa backs Twitter

co-founder’s mobile venture

LOS ANGELES | Wed Apr 27, 2011 1:57pm EDT

(Reuters) – Visa Inc has thrown its weight behind a mobile payments venture created by Twitter co-founder Jack Dorsey.

The credit-card company has made an unspecified investment in Square, a two-year-old service that helps businesses and consumers pay with credit cards on a mobile phone or Apple Inc iPhone, both companies said in a statement.

In return, a Visa executive gets to sit on the advisory board at Square, which is also backed by Sequoia Capital and Khosla Ventures.

Square’s service employs a miniature magnetic card-reader that plugs into a device, such as an iPhone or Google Android phone. CEO Dorsey in March returned to the microblogging sensation he helped create, taking up the post of executive chairman — in addition to his responsibilities at Square — to oversee product development.

(Reporting by Edwin Chan. Editing by Robert MacMillan)

Sourced & published by Henry Sapiecha

Social Networks set

To Capture 11%

of all Online Ad Spending

in 2011

U.S. marketers will spend $3.08 billion to advertise on social networking sites this year, according to new estimates from eMarketer.

That’s a 55% increase over the $1.99 billion U.S. advertisers reportedly spent on social networking sites in 2010, and nearly 11% of what they are expected to spend on all online advertising in the U.S. in 2011, eMarketer says.

Worldwide spending on social networks is expected to rise 71.6% to $5.97 billion, approximately 8.7% of the total amount advertisers are predicted to spend online in 2011.

And which social network is poised to take the biggest slice of those ad dollars? You guessed it: Facebook(Facebook).

eMarketer expects that advertisers will spend $4 billion on the social networking giant this year, $2.19 billion of which will come from U.S. advertisers. That’s more than double the amount ($1.86 billion) Facebook pulled in in 2010.

“2010 was the year that Facebook firmly established itself as a major force not only in social network advertising but all of online advertising,” said Debra Aho Williamson, principal analyst at eMarketer. “In 2011, its global presence is something multinational advertisers can’t ignore.”

It could even surpass these estimates if it’s able to increase its global user base and pull in more revenue per user, she said

Sourced & published by Henry Sapiecha

Facebook’s financials

revealed in wiki style leak

January 7, 2011 – 6:48AM

Facebook earned $US355 million in net income profit in the first nine months of 2010 on revenue of $US1.2 billion, according to documents that Goldman Sachs is providing to clients.

Goldman began hand-delivering copies of the 101-page private placement memorandum for the Facebook offering to its wealthy customers a little after lunchtime Thursday in New York, according to a person who received a copy.

The Goldman customer said he received a separate six-page financial statement containing information on the social networking firm.

The document provides some of the most detailed financial information to come to light about Facebook, which Goldman recently valued at $US50 billion in a separate, $US450 million funding.

The financial statements were not audited and offered little detail about how Facebook generates it revenue, said the source, who did not want to be identified because he had signed a non-disclosure confidentiality agreement.

Goldman customers seeking to buy shares in the privately held Facebook will invest money in a newly formed Delaware entity called FBDC Investors LP, according to the source. Corporate records show that FBDC Investors was incorporated in Delaware on January 5.

Goldman customers have until Friday, US time to commit to investing in the new entity and until next Tuesday to wire money to the Wall Street firm.

Goldman, which is investing $US450 million of its own capital in Facebook, is raising at least $US1.5 billion from its wealthy clients through the limited-time offering.

Investors are increasingly eager to buy shares of Facebook and other fast-growing internet social networking companies on private exchanges.

Sourced & published by Henry Sapiecha

WINNING WITH FACEBOOK

STAY IN THE FACEBOOK GAME OR PERISH

Dec. 21 – Small businesses are leveraging their profiles on Facebook to boost their business by keeping in close contact with customers.

Karina Huber reports.

Getting the message out on Facebook View video here

Getting the message out on Facebook

Sourced & published by Henry Sapiecha