In a surprise move, Facebook Australia and New Zealand boss Paul Borrud will exit the company next month with the search for a replacement now underway.
The social media giant confirmed Borrud, who relocated from the US in 2009 to launch the local operation, would leave in February.
Borrud is staying in Australia – he is now an Australian citizen – to pursue “personal interests” and spend more time with his young family.
He was part of the early US executive team hired by Facebook founder Mark Zuckerberg.
The company said in a statement: “Paul has played a major role in the growth of Facebook’s advertising and sales business, starting in the United States. Facebook is currently recruiting for the position. Paul will continue with Facebook until mid-February.”
It is unclear who will replace Borrud but industry conjecture has Liam Walsh, hired by the company last year to bolster its clout with media agencies and advertisers, as a contender. Former Ninemsn chief executive Joe Pollard has also been flagged although a broader internal search across Facebook’s international operations is also likely.
Facebook’s ad revenues continue to grow rapidly in Australia as the company spruiks an active user base here of over 10 million with “time spent” by users each month streets ahead of its closest rival, Google, according to Nielsen Online. Australian users spent 7.4 hours on Facebook last November, compared to 2.3 hours on Google and 1.5 hours on eBay, the third-ranked online publisher for time spent, according to Nielsen.
“Facebook is commercialising every part of itself as we speak,” said James Hier, chief strategy officer at MEC. “Facebook is trying to work out how brands pay to play. They’re putting ads in news feeds and we’ll see what people’s reaction to that is. They’re looking to monetise the personal areas of Facebook. From a brand perspective, they’re having to spend more money which they used to be able to do for free.”
Borrud is expected to pursue charity work he is involved in although there is some speculation he may be working on some commercial interests.
He said in a statement: “Facebook has been an amazing ride, from our early days as a start-up through to moving to Sydney and making Australia home.”
Omnicom Media Group chief executive Leigh Terry said: “Five years ago you if you were on TV and didn’t have a digital advertising strategy you wouldn’t be shot. We’re almost at that point now given the size of Facebook’s audience that it’s too conspicuous if you don’t have it in your digital plan. Facebook could well be writing $100 million in Australia in the next two or three years.”
Industry estimates put Facebook’s current Australian revenues in the $50-60 million range.
Globally, the company has been subject to ongoing privacy concerns and criticism over more overt commercial advertising initiatives. In recent months it appears the appetite from Australians may have cooled. According to Nielsen, Facebook shed 600,000 users between September and November, although rivals like Google, Microsoft and Yahoo!7 have seen similar declines in user numbers over the same period.
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