UPDATE: Bebo confirms layoffs; says is committed to NZ

Telecom’s social networking partner, Bebo, is tanking in the ratings.

The social networking service is reportedly about to close its Australian operation, beaten down by strong competitors.

Traffic figures supplied to NBR by Nielsen (above) and Hitwise show the youth-focussed site is struggling on this side of the Tasman as well.

In March this year, the US-founded Bebo signed an exclusive mobile partnership with Telecom, which has released phone with dedicated Bebo buttons for its XT network. (Bebo also developed a close advertising relationship with TVNZ - but the two parted ways on September 15.)

At the time, Bebo was white hot, especially with teens.

But since then it’s been all down hill.

Facebook has continued to gather momentum, and Twitter (now directly supported by Telecom and Vodafone) has grown wings.

And LinkedIn is also in growth mode, claiming 1.2 users across Australasia as it appointed its first Australia-New Zealand manager today, Vodafone and Yahoo ANZ veteran Clifford Rosenberg.

Ivan Fuyala, GM of Nielsen's NZ Online Division, told NBR that Facebook's rise had been meteoric. At the same time, Bebo has slumped (see chart top of story).

But while Facebook, Twitter and the business-focussed LinkedIn tend to appeal to 20, 30 and 40-somethings, Bebo’s central appeal has always been to a young, more fickle crowd - and they appear to be fickling away.

Telecom referred a request for comment on the future of the social network's services in New Zealand to Bebo.

Bebo had no immediate comment.

TWO COUNTRIES, ONE STORY: Bebo's performance in New Zealand (above) and Australia (below).