Things To Infer From Facebook Buying Stake In Jio | Institute of Digital and Content Marketing
Facebook Inc, the social media giant has finally decided to invest in the Indian telecom player Jio after months of speculation. After recent reports that Facebook was looking to acquire a stake in Jio, the company has now confirmed that it has purchased a majority stake in the Reliance-owned venture for a massive $US5.7 billion. No wonder digital marketing in 2020 will be shaken up quite a bit.
While Facebook needs no introduction, Jio was founded less than 4 years back and has quickly gone on to become one of the top internet providers in India with approximately 388 million customers. The arrival of Facebook at the table might prove to be useful. This is because Jio will have a whole range of new resources at its disposal, funds being at the center of that.
This acquisition is a win-win for both. For Reliance, whose debt swelled to more than $40 billion USD (or 3 lakh crore INR) as of September, the partnership will bring in much-needed funds. When it comes to Facebook, it can explore a new avenue into the Indian market, which it’s been looking to gain a foothold in for many years, with varying degrees of success.
(Source: Entrackr)
Let us take a critical look at how things might unfold from the digital marketing point-of-view.
Small businesses would get better Social Media Marketing (SMM) exposure
Facebook, while breaking this news to the world, remarked:
“Our goal is to enable new opportunities for businesses of all sizes, but especially for the more than 60 million small businesses across India. They account for the majority of jobs in the country, and form the heart and soul of rural and urban communities alike. In the face of the coronavirus, it is important that we both combat this global pandemic now, and lay the groundwork to help people and businesses in the years to come.”
Facebook’s tie-up with Jio would indeed prove to a boon for the vast majority of small and medium scale businesses in India that were previously finding it difficult to go online. Cheap mobile data coupled with better social media marketing opportunities provided by Facebook at reasonable rates would see businesses flourish in the long run.
It can be safely stated that finding new customers would present less of a problem now.
WhatsApp will become a sharper tool for Digital Marketing
Facebook-owned messaging platform WhatsApp is definitely going to get a shot in the arm when it comes to digital marketing and e-Commerce.
With a 400-million strong user base of WhatsApp alone in addition to 250 million on Facebook, many businesses leverage these two platforms to conduct their business operations including marketing, social awareness, taking orders, accepting payments, etc. WhatsApp already has splendid reach and popularity, which is only going to increase from here.
The deal is a good opportunity for Facebook to monetize WhatsApp and gradually morph it into the Indian WeChat. For ‘kirana’ stores, in the near future, it might mean making a wider range of cheap fast mover consumer goods available to more consumers.
The marriage of apps like JioMart and JioPay/ WhatsApp Pay will boost e-commerce
Jio Money and WhatsApp Pay could have an important role as the enablers of e-commerce. While online commerce could be the beginning, healthcare could be the next big opportunity for the partnership.
Several state governments, in tie-up with Jio, are now offering the poor smartphones as part of its official program. That could swell usage for the platform. The future of India’s online commerce will unfold in the coming months.
Even though it’s too early to correctly predict things but the e-commerce and digital marketing scenario in 2020 are certainly going to be more competitive than before with this partnership coming to fruition. Keeping this in mind now is the time to act if you are thinking of pursuing a successful career in Digital & Content Marketing.
Do you have anything to add to our list? Socialize in the comments section now!
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