Jan 14, 2010

Five things you need to know about... Yahoo-Friendster tie-up

Barney Loehnis (pictured), the newly appointed regional head of digital at OgilvyOne, tells us the implications of the Yahoo and Friendster partnership and how this deal could provide the first ingredient "to spark the digital revolution in Southeast Asia."

Five things you need to know about... Yahoo-Friendster tie-up
1. Is the timing just right, or too late? Had this partnership been announced 18 months ago, when Friendster was supreme master over Facebook in most Southeast markets, and Yahoo was the sole (global) provider of high quality portal services, then I think a partnership would have been brilliant. Today's landscape is different: Facebook is continuing its growth in Southeast Asia, and competition with local sites is increasing for Yahoo. Yahoo will need to gamble that Friendster defeats Facebook for this deal to stay alive; on that count the jury is out.

2. From a consumer perspective - particularly for existing users of Friendster - the most important question is whether the deal will deliver tangible benefits? Will it help socialise their surfing experience? Integrated log-in is an interesting approach as would be sharing of friends and IM across networks, but to make these developments happen, when the two parties have only signed a deal and not a marriage bond might be too much to ask.

3. For advertisers this is a brilliant opportunity. With two of the largest and most relevant media properties working together it is far more compelling why advertisers should invest in digital, and how it will succeed in reaching consumers. I would also hope that the two partners will jointly develop the integration of their mobile services - particularly important and relevant in Southeast Asia.

4. For agencies who are concerned with delivering the right message to the most relevant person at the most effective cost, this is also good news. Both properties can be used to complement each other with a range of banners, content, search results and contextually relevant information; and that chain of events should be tracked and crafted into compelling case studies for clients. With search being one component of this mix, it might also be a catalyst to drive more investment in SEM in Southeast Asia.

5. The impact on the development of the local digital landscape should also be positive for consumers and media sites, especially in these markets where commitment to digital is latent, nascent or absent. To grow these markets it is vital to have leaders with strong audience reach in order to compete with offline media. So local players will benefit as more money is allocated online, even if Yahoo and Friendster continue to take the majority of online budgets.  
Source:
Campaign Asia

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