Boston, MA 01/15/2013 (wallstreetpr) – Facebook Inc (NASDAQ:FB) trails domestic rivals in Russia. This has been one particular challenge for the company even as it continues to add numbers to its network from other emerging markets. Russia is a promising social network market and Facebook seems keen to have a strong presence there.
Towards this end, the company has announced what is believed to be a non-cash deal with Yandex which is the largest search engine in Russia. This deal involves sharing public data of Facebooks’s users in which people can easily search for friends without necessarily having to sign up on each and every social network platform.
As part of this data sharing agreement, Yandex will have access to data of Facebook Inc (NASDAQ:FB) users in Russia, Turkey, Kazakhstan, Ukraine and Belarus. In return Facebook hopes to boost its position in these markets in order to earn higher revenue.
While this deal isn’t going to move mountains immediately for Facebook, it is a low-cost and strategic approach to get into the heart of users in regions better served by Yandex.
Ad revenue
Facebook Inc (NASDAQ:FB) is taking the fight for ad revenue too far. The company recently introduced video ads which have and impressive appeal to brand advertisers. Analysts expect the company to generate more than $1.1 billion from video ads alone.
The company’s aggressive push to fully monetize its ad opportunities affects the position of Google Inc (NASDAQ:GOOG) which has been known as the king of Internet ad revenue.
Expanding out reach
By seeking to crack social network password in Russia, Facebook Inc (NASDAQ:FB) can been seen expanding the reach of its ad offering in order to boots revenue from this segment.
Currently Facebook Inc (NASDAQ:FB) has more than 1.2 billion users, making it the world’s largest social network. Facebook is also growing its mobile platform which has come to be loved by advertisers since it allows hassle-free switch of desktop ads to mobile.
