These days, it's getting debating issue whether Facebook will succeed in Korea industry. Recently, Facebook seems to dye down due to recent moves that the industry is precarious and its new ‘promoted post’ service is unlikely to attract more people in Korea. However, I strongly believe that Facebook is doing well so far and going to be alright to run business in Korea.
It's true that the biggest concern for the company is whether it can find a sustainable business model that ensures survival in the volatile information technology industry after the humiliation of seeing its stock price halved after it went public. The recent move seems to be a part of the company’s focus on expanding its advertising businesses, which is raising some doubts and reflecting the pressure the company is under to find a revenue pipeline. However, I think Facebook excels in Korea industry and will move forward when it approaches the concepts smartly. Still, online users in Korea love doing 'Facebook', sharing a variety of contents with friends and interacting with people actively. In addition, Facebook has performed well in Korea industry especially when it comes to it's advertisements sector, with brilliant targeting system even compared to Google. For instance, the increasing number of advertising companies including majors such as Samsung Electronics, LG and Hyundai put Facebook on a par with television, broadcasting and online as a category when they are planning their marketing strategies. Therefore, Facebook has a good chance to earn sustained revenue from Korea if the company expands its advertisements well.
It is somewhat obvious that Facebook's new service “promoted posts” doesn't fit into Korean customer's traditional moods, at the beginning. Even though the company argues that people will be more likely to see their friends' story in news feeds, users will be disappointed that an SNS service’s main selling-point as a place of communication is being transformed to become more about earning money. Truly,this is the dilemma that all recent SNS businesses are facing; how to become profitable without tainting their brand image. What's worse, Korean consumers have always turned away from services that charge, especially on the Internet. Nevertheless, We have to know that consumers in Korea have more tolerance for advertisements compared to the United States; For instance, Korea's major web portal "Naver", which posts many eye-catching ads, is still popular. I argue that Facebook needs to find a way to entice users and make them pay without thinking about it too much. Also, If the company succeeds in transferring the new service and other advertisements successfully onto mobile platforms in Korea, there will be a chance of a boost in revenue from Korea. For example, "Kakao Story", one of major social media services based on the mobile platform in Korea, pushes games to keep users on its services. This leads to advertisement exposure as well as making users pay for more features of the game naturally. Thus, It's high time for Facebook to be more brilliant, and I expect the company will surely do in the near future.
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