Facebook ads thru Httpool halted for businesses
Httpool, Meta's sales partner in Bangladesh, has suspended services after it failed to repatriate funds following curbs on dollar outflows, in what can be viewed as a crushing blow to local businesses.
The development, which follows similar complaints from foreign airlines and shipping companies, will be particularly damaging for women-owned businesses and SMEs, which are inextricably reliant on Meta's social media platforms Facebook, Instagram and WhatsApp to advertise their goods and services.
As of January, there are more than 43 million Facebook users in Bangladesh, making the country the ninth largest in terms of audience, according to global data firm Statista.
In a letter to clients on April 25, Httpool said its services related to the Meta platform will be temporarily unavailable or reduced until further notice.
"This is due to the lack of USD currency available and difficulties with remittances abroad," said the letter signed by Sunny Nagpal, director of Httpool Bangladesh.
Subsequently, there will be limited availability of ad space on the platform offered by Httpool, which may affect the clients' upcoming campaigns and the possibility of rejection/blockages of the current and upcoming campaigns.
"This is a necessary measure that we must take in light of the current economic conditions, that are an unexpected and disruptive situation outside of our control," the letter added.
Like Httpool, foreign airlines and shipping companies have been unable to repatriate proceeds, while businesses have been unable to open letters of credit as the government endeavours to safeguard its dwindling dollar stockpile.
As of April 17, gross foreign currency reserves, as per the Bangladesh Bank's methodology, stand at $31.1 billion, down 29.4 percent year-on-year.
However, the usable reserves are less than $22 billion, meaning an import cover of a little over three months, according to finance ministry officials involved with negotiating with the International Monetary Fund over the $4.7 billion loan programme. They spoke on the condition of anonymity due to the sensitivity of the matter.
Keeping at least $22.95 billion of usable reserves on March 30 was one of the stipulations of the Washington-based multilateral lender -- and the government has failed to meet that requirement, they said.
Httpool acknowledged sending the letter to clients. The company declined to comment further.
BB Spokesman Md. Mezbaul Haque denied imposing any curbs on dollar repatriation by Httpool.
"Maybe Httpool's bank has failed to supply the necessary amount of dollars," he said.
None is facing any difficulty in repatriating dollars, he added.
"It is a huge local problem," said Fahim Mashroor, chief executive officer of bdjobs.com, AjkerDeal and Delivery Tiger, which posts ads on Facebook.
Businesses will face big losses and the whole digital business ecosystem would be impacted, said Mohammad Sahab Uddin, vice-president of the e-Commerce Association of Bangladesh.
"The way Httpool provided services to the small Facebook-based entrepreneurs in recent times, they have become dependent on it. These companies will see a drop in sales."
All tech-based companies would be affected too as the digital ads mobilise a significant volume of sales for them, he added.
For compliant local companies, the cost of digital ads is already high due to value-added tax and other duties, said Mashroor, a former president of the Bangladesh Association of Software and Information Services (BASIS).
"Also, the level playing field is seriously distorted compared to foreign-owned platforms that pay Facebook from their parent companies' accounts. This will create unfair competition and there will be no level playing field in promoting business," he added.
Customers too will be affected by Httpool's suspension of services as they will not be able to find out about the best deals and offers, said Russell T Ahmed, president of BASIS. "So, it's important to facilitate these payments," he added.
"We greatly depended on Facebook ads and this will almost completely stop our marketing activities," said Salman Saad Karim Chowdhury, founder of the e-commerce platform Pristineshop.
The e-commerce firm spends $7,500 to $8,000 on ad space on Meta's platforms.
"We paid Tk 95 a dollar about a year and a half ago to purchase digital ads. Now, it has increased to Tk 122-123 including 15 percent VAT," he added.
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