Most of Facebook’s new users aren’t making the company much money


Quartz

Facebook just posted another set of stellar quarterly results, surpassing most expectations for profits and sales as it reaped massive benefits from selling mobile ads, which now make up the majority of its business. And more of the world is using Facebook, as monthly active users hit a new peak of 1.32 billion, up about 200 million from a year ago.

But there’s just one problem. Facebook’s hugely profitable mobile ad business is mostly taking hold in already saturated markets such as the US, Canada, and Europe, where the social network’s growth rates are slowing. And users in Asia and the developing world, which are still growing rapidly, are much less attractive to advertisers, and are hence worth much less to Facebook.

Facebook-s-global-mismatch-user-growth-revenue-per-user_chartbuilder (1) no-caption

Facebook is well aware of the problem. COO Sheryl Sandberg took a high-profile trip last month to India, which has about 100 million active Facebook users but contributes less…

View original post 24 more words

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s