Google+

U.S. Users on Facebook the Smallest Group, Not Good For Profits

Facebook posted quarterly earnings today and dumped a load of data into analysts’ laps.

User numbers hit a new high, with 955 million worldwide visiting the site at least once a month. And earning are slightly above estimates, coming in at $1.18 billion in revenue and 32 percent year-over-year growth. Over half a billion are coming from mobile devices.

One of the most interesting slides in the company’s quarterly earnings release, however, is this one:

Just two years ago, the United States and Canada made up 30 percent of Facebook’s users. Fast-forward to today, and the percentage is a little bit different: under 20.

Not only has the percentage changed, but the growth rate is almost negligible: only about 35 percent user growth over 24 months for the world’s social utility. That compares to 170 percent growth in Facebook’s “rest-of-the-world” category, which includes Africa, and 165 percent growth in Asia.

Even stodgy old Europe has 63 percent growth.

On the one hand, this is expected and normal. North America has a limited population, about 350 million, of which Facebook has about a 53 percent penetration rate. That’s slightly up from about 50 percent at the end of 2011.

On the other hand … why are those missing 164 million people not on Facebook? It’s a question the company should ponder … particularly because US and European internet users are worth more to advertisers than any others. Internet users are valued at perhaps $1,200 to advertisers, with Facebook making about an annualized $5 as of the first quarter of this year, and Google collecting $20 per user per year.

But not all internet users.

Zambia’s average annual income is $1,600. In the Phillipines, a college professor might make $500 dollars a month. I don’t think Barney’s New York is banging down their doors to sell $5,000 Gucci bags. Not too many iPhones being sold in Cambodia.

The point?

As Facebook’s growth has transitioned largely to the developing world: Asia, Africa, Oceania … the average value to advertisers per user is going down. Just check another slide from the Facebook deck:

The biggest chunk of Facebook users — “rest of world,” at 268 million — accounts for the smallest slice of Facebook’s revenue, $113 million. In fact, if you do that math, you can find the average value to Facebook, per quarter, of each user:

  • US/Canada: $3.20
  • Europe: $1.43
  • Asia: $0.55
  • Rest of world: $0.44

The good news is, if this quarter is any indication, Facebook could be bringing in about $12 per US and Canadian user per year. But there’s also bad news … and that’s everywhere else.

Europe can probably be fixed with more time and attention than the US-centric Facebook has given it so far. Starting an office in London may help with that. But Asia? And the rest of the world? Those per-capita incomes aren’t coming up to U.S. standards any time real soon.

Source: Venture Beat, John Koetsier

REQUEST INFORMATION

Entertainment

For movies opening August 18, 2017

  OPENING THIS WEEK Kam's Kapsules Weekly Previews That Make Choosing a Film Fun by Kam Williams For movies opening August 18, 2017 BIG BUDGET FILMS The Hitman's Bodyguard (R for graphic violence and pervasive profanity) Unlikely-buddies comedy about an ace bodyguard (Ryan Reynolds) who grudgingly helps a notorious assassin (Samuel L. Jackson) negotiate a dangerous gauntlet en route to the Hague where he's set to testify in 24 … [Read More its Good for You.....]

Lifestyle

The “King” Will Take Center Stage at the 2017 Wildlife Conservation Expo

  The “King” Will Take Center Stage at the 2017 Wildlife Conservation Expo by Amy Lignor   Each and every year the Wildlife Conservation Expo is held to address situations out there that are harming our world and its animal inhabitants. This time around, WCN’s annual Fall Wildlife Conservation Expo in October, will be focusing on various issues, but it is the King of the Jungle who will be taking center stage. For those who are … [Read More its Good for You...]

Outdoors

How Bassmaster Pro Edwin Evers Adjusts the Auto Settings on His Sonar

  How Bassmaster Pro Edwin Evers Adjusts the Auto Settings on His Sonar  by Edwin Evers When it comes to electronics, a question I get asked a lot is, “How do you customize your fish finder settings at the beginning of a day on the water?” The short answer is, “I don’t.”   You might think that a guy who makes his living with a rod and reel and who’s always looking for ways to tweak a lure or find a stronger knot would spend a … [Read More its Good for You...]

Sports

College Football Arriving Soon!

  College Football Arriving Soon! by Amy Lignor   Ask any college football fan and they will tell you that it seems like an eternity waiting for the season to begin. But, have no fear, the kick-off to the college season is almost here, with Colorado State and Oregon State hitting the field on Saturday, August 26th at 2:30 p.m. ET. On the same day, fans of Oregon State and Colorado State will see an active match-up, and Portland … [Read More its Good for You...]

Travel

Going Back in Time on the Ultimate Steamboat Vacation

  Going Back in Time on the Ultimate Steamboat Vacation by Amy Lignor   Many people love taking a cruise. But it is the river cruise on that glorious steamboat that not only offers all the benefits a big ocean liner offers, but also creates a more personalized, intimate vacation experience. It is a unique recipe: being able to witness stunning landscapes, mixed with amazing history, while dining on acclaimed regional cuisine and … [Read More its Good for You...]

Real Estate

Real Estate: Refinancing Rates on the Rise in 2017

  Real Estate: Refinancing Rates on the Rise in 2017 by Amy Lignor   The term ‘meteoric rise’ usually applies to something fun. Think: A Hollywood actor who has been ‘discovered.’) Unfortunately, when it comes to this article, ‘meteoric rise’ is something that will not bring a smile to one’s face. To put it simply, if you wish to refinance your home, you need to do it ASAP. If choosing to wait too much longer, homeowners across the … [Read More its Good for You.....]

Business

Umbrella Insurance: The Safety Net You Need

  Umbrella Insurance: The Safety Net You Need by Amy Lignor   The realm of insurance is just about the most difficult maze to get through. Each and every day it seems the financial and insurance industries are changing. What is not changing, however, is the fact that lawsuits fill up the courts more and more – lawsuits that award cash to third parties even if you don’t happen to have that cash saved. More and more, the words “umbrella … [Read More its Good for You...]

Green Living

Creating the Perfect Vegetable Garden

  Creating the Perfect Vegetable Garden by Amy Lignor   Many are still dealing with that wintery mix Mother Nature just loves to toss down from the sky this time of year. Yet, that gardener living inside the soul – the one just dreaming of the sunny skies and lazy rainy days that are must-haves in order to grow the best vegetables possible – is already jotting down the facts, tricks and tips they need to know in order to make that … [Read More its Good for You...]

Books

Book of Black Heroes

  Book of Black Heroes Political Leaders Past and Present by Gil L. Robertson, IV Foreword by Myrlie Evers-Williams Just Us Books Paperback, $12.95 80 pages ISBN: 978-1-933491-21-9 Book Review by Kam Williams “The first African-American political leaders began to serve following the Civil War...Known as Reconstruction, this period represented a window of opportunity for African-Americans... Many [Black] political leaders emerged … [Read More its Good for You...]

Trackbacks

  1. […] for Q2 2012, its first earnings release since its IPO in May, and they were pretty …US Users on Facebook the Smallest Group, Not Good For ProfitsStaugnewsFacebook Struggles With Monetizing Its Mobile UsersForbesAnalysts Take A Closer Look At […]

  2. […] for Q2 2012, its first earnings release since its IPO in May, and they were pretty …US Users on Facebook the Smallest Group, Not Good For ProfitsStaugnewsFacebook Struggles With Monetizing Its Mobile UsersForbes Analysts Take A Closer Look At […]

  3. […] for Q2 2012, its first earnings release since its IPO in May, and they were pretty …US Users on Facebook the Smallest Group, Not Good For ProfitsStaugnewsFacebook Struggles With Monetizing Its Mobile UsersForbes Analysts Take A Closer Look At […]