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

Love Gurus Date Despite Philosophical Differences in Delightful Romantic Romp

  The Bounce Back Film Review by Kam Williams Love Gurus Date Despite Philosophical Differences in Delightful Romantic Romp   Love guru Matthew Taylor (Shemar Moore) is the author of the new best seller, "The Bounce Back." Accompanied by his enterprising business manager, Terry (Bill Bellamy), he's been hawking the self-help book on plenty of TV and radio programs. Since Terry believes that "Image is everything," he's concerned that … [Read More its Good for You.....]

Books

Volume 2 of Yes Sir, Yes Sir, 3 Bags Full! – You Do NOT Want to Miss This

  Volume 2 of Yes Sir, Yes Sir, 3 Bags Full! – You Do NOT Want to Miss This Book Review by Amy Lignor What began in an unforgettable Volume 1—living Jerry Hall’s story and dealing with the heart-wrenching issues of the Viet Nam* War—continues here. The action of battle, fraught with the unending horrors that the “unwanted veterans” dealt with, grows even more painful. And as war comes closer to an end, what should have been peaceful … [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

New Home Sales Jump in April

  New Home Sales Jump in April By Burt Carey Sales of new homes hit their highest rate since 2008 in April, according to the Commerce Department’s U.S. Census Bureau. April sales increased 16.6 percent over March figures, which correlates to a seasonally adjusted rate of 619,000 home sales projected for the year. The median price of those new homes was $321,000, the highest median price ever recorded. That’s up 9.7 percent … [Read More its Good for You.....]

Lifestyle

Gain all Access Mobility with Roundabout Woodsman

Gain all Access Mobility with Roundabout Woodsman By Craig Lamb You are a waterfowler hunting solo with your prized retriever. Getting to the blind takes a four-wheel drive to pull through mud holes and keep on the two-track. Behind your truck is that aluminum jon boat. Launching that beast alone is a real hassle. Get it launched and you spend more time loading all the gear, a dog and yourself. All of the above is part of the fun, maybe, of … [Read More its Good for You...]

Outdoors

Gain all Access Mobility with Roundabout Woodsman

Gain all Access Mobility with Roundabout Woodsman By Craig Lamb You are a waterfowler hunting solo with your prized retriever. Getting to the blind takes a four-wheel drive to pull through mud holes and keep on the two-track. Behind your truck is that aluminum jon boat. Launching that beast alone is a real hassle. Get it launched and you spend more time loading all the gear, a dog and yourself. All of the above is part of the fun, maybe, of … [Read More its Good for You...]

Sports

The Best & Worst (So Far) of the 2016 NFL Season

  The Best & Worst (So Far) of the 2016 NFL Season by Amy Lignor     Okay…we’re almost dead center, folks, so it’s time to sum up the best and silliest actions and reactions that the 2016 NFL season has provided fans thus far.   Analysts are always yapping, and most likely nothing they say will actually come true. However, right now almost everyone is agreeing to the fact that Tom Brady has a score to settle. Yes, … [Read More its Good for You...]

Business

Charity Begins at Home

  Charity Begins at Home by Amy Lignor   Turning a blind eye is easy for some; preferred by others. But the fact is that the bad doesn’t become good – in any area – unless eyes are open wide to not only see what’s occurring, but also to gain the knowledge needed to stop the bad from getting even worse. Remarks are made about “other countries” and what they do wrong when it comes to the harming of animals for profit. However, in … [Read More its Good for You...]

Travel

Exploring the Holidays Around the Globe

  Exploring the Holidays Around the Globe by Amy Lignor   Thanksgiving has been had. Games have been watched and the golden turkey has caused a great many belts to be loosened. So…here it comes!   From hanging the stockings on the chimney with care to the red-nosed reindeer who had to be there; from Santa heading down that chimney just right to lovely sleigh bells ringing softly in the night, the holiday season is a truly … [Read More its Good for You...]

Green Living

Forecasting Climate Change

  Forecasting Climate Change by Amy Lignor As with anything in this world, it depends on whose opinion or observations you trust as to just how bad climate change is becoming. As 2016 begins to wrap up, climate scientists, atmospheric physicists, chemists, oceanographers – you name it – no one can come up with any other explanation for climate change and the warming of our planet other than human activity. How fast is it happening? … [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 […]