Facebook rakes in around 51% of its global ad revenue from oversees, executives told Reuters. This indicates that international markets have contributed more than the U.S. market for Facebook when it comes to ad revenue.
International markets lead ad revenue
As per the executives, the social networking site has seen the highest ad revenue growth at 57% in Asia. Until now, Facebook only revealed regional growth in percentage terms, but for the first time, it has given a detailed ad sale breakdown outside the United States and Canada as a percentage of worldwide sales.
“The next 1 billion consumers are going to come from these (international) countries,” Carolyn Everson, vice president of global marketing solutions at Facebook, told Reuters.
Ad revenue for the latest quarter spiked 46% to $3.3 billion, accounting for a major portion of Facebook’s $3.5 billion in quarterly sales. At 51%, the total ad revenue from international markets would around $1.7 billion. The United States is ahead of Europe in terms of ad revenue growth, but it lags the Asia Pacific region. Compared to this, Google earned 57% of its revenue from International markets in the first quarter.
Facebook Inc (NASDAQ:FB)’s mobile platform, which contributes 70% of its ad revenue, is getting popular among advertisers in emerging markets, according to Everson.
China, India main catalysts for Facebook (FB)
Facebook Inc (NASDAQ:FB) is deriving profit from Chinese exporters, which are making efforts to attract potential customers from outside the country and from an influx of venture capital funding into India, offering funds for advertising to start-ups. Everson said that as of now, there is nothing to share on expansion in China even though the company has offices in Hong Kong.
Dan Neary, vice president of Facebook’s Asia Pacific region, said that Chinese businesses are getting more advanced when it comes to promoting their brands. Additionally, “Manufactures are becoming savvy marketers in their own right,” Neary told Reuters.
Neary said that in Indian e-commerce start-ups are buzzing, and a large number of people are turning to Facebook to reach new consumers. Additionally, the company is started to deliver customized solutions to the country, including optimizing video and pictures to match slower connections in Indi, where ad services like “missed calls” also help customers save their call charges.
On Tuesday, FFacebook Inc (NASDAQ:FB) shares closed flat at $80.67, and year to date, the stock is up by almost 2%.