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

Entertainment

Abductee Seeks to Escape Kidnappers in Mindbending Sci-fi Thriller

  Rupture Film Review by Kam Williams Abductee Seeks to Escape Kidnappers in Mindbending Sci-fi Thriller Renee (Noomi Rapace) was leading an unremarkable existence in suburban Kansas City the day she was abducted by five strangers after her car broke down. Until then, she was just an average divorcee' doing her best to shield a young son (Percy Hynes White) from an embittered ex-husband's (Paul Popowich) vicious barbs.   Otherwise, … [Read More its Good for You.....]

Books

Cop under Fire

  Cop under Fire Moving Beyond Hashtags of Race, Crime and Politics for a Better America by Sheriff David Clarke, Jr. with Nancy French Foreword by Sean Hannity Worthy Publishing Hardcover, $21.99 272 pages ISBN: 978-1-617-95857-1 Book Review by Kam Williams “David Clarke refuses to bow a knee to political correctness, and he refuses to give his party over to the hands of black activists whose politics would destroy America. … [Read More its Good for You...]

Art

The Day After the Day Of

  The Day After the Day Of by Paul Ilechko   The sky sheds its tears. This morning is the morning of the day after. The day of mourning, the day after the day of.  I beseech the sky to shed tears in order to wash away the tears on my face.   This is the first day of the time after. This is the beginning of a new time, the days of pain, the days of sorrow. We are in mourning. The sky looks down and sheds its tears for … [Read More its Good For You...]

Real Estate

History Being Sold to the Highest Bidder

  History Being Sold to the Highest Bidder by Amy Lignor   For the longest time, scientists and archaeologists have been confused and bemused by various discoveries they’ve unearthed that offer little or no explanation as to the who, what, and why of the people who created these things or left them behind. Even now, in 2017, there are discoveries being studied; stories that were once legends now have actual bits of proof being found that … [Read More its Good for You.....]

Lifestyle

Make Way for Dulé!

  Dulé Hill The “Sleight” Interview with Kam Williams Make Way for Dulé! Born in Orange, New Jersey and raised in Sayreville, Dulé Hill began attending dance school when he was 3 years- old. He later received his first break as the understudy to Savion Glover on Broadway in “The Tap Dance Kid.” Dulé went on to perform the lead role in the musical’s national tour. And his additional stage credits include “Bring in ‘Da Noise, Bring in … [Read More its Good for You...]

Outdoors

Cajun Baby chooses Skeeter for a reason

  Cajun Baby chooses Skeeter for a reason By Craig Lamb Cliff Crochet, known on the pro bass tour as the Cajun Baby, has a lot to be proud of besides his south Louisiana roots. In Cajun country, boats are part of life, either for a livelihood or connection to the outdoors for recreation with friends and family. Crochet quote about Cajun roots. Crochet's resume includes 9 Top 10 finishes, three appearances in the Bassmaster Classic, and a … [Read More its Good for You...]

Sports

“Sin City” Becomes Acceptable?

  “Sin City” Becomes Acceptable? by Amy Lignor   So…what changes will occur if an NFL team hits Las Vegas? Not many, actually. Perhaps more of the ‘contract money’ will be lost considering the blackjack tables ARE right in the vicinity; however, NFL owners seem just fine with the fact that the Raiders will once again wave good-bye to their “Nation” and relocate to Sin City. But when you look at the news headlines, the NFL has and … [Read More its Good for You...]

Business

Buying & Selling: Learning the Art of the Tag Sale

  Buying & Selling: Learning the Art of the Tag Sale by Amy Lignor   When people speak about making a few extra bucks, there is more than one way to skin a cat these days. Perhaps you’re trying to save up for a vacation for the family to take this summer. Perhaps you are looking for collectibles to invest in. Oddly enough, many people do not realize what, exactly, was in Great Grandma’s house when she passed on to a happier place. … [Read More its Good for You...]

Travel

Vacations…Underground

  Vacations…Underground by Amy Lignor   There are millions of spots to visit and sites to see around the world when it comes to vacation time; however, there are also those you can’t necessarily “see.” In this world of digital technology and highly imaginative architecture that creates buildings that are higher and more “glitzy” than ever before, it is important to remember that in ancient times, people were building “down.” Various … [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...]

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 […]