Facebook Income From Developing Regions Increases By Almost Four Times

Facebook reaped much more from developing regions than it used to earn in 2012.

Four years ago, Facebook used to earn just $0.32 from every user in the less developed world, as most citizens of Mexico, Brazil, and India do not have much to spend. This was hard on the bottom line of the social media service provider. These people either could not afford high-speed mobile networks or do not have them, which meant the experience of loading the advertisement-filled News Feed was agonizing.

People were either using older smart phones equipped with tiny screens or feature phones so advertisements did not look so enticing. Some users did not have the purchasing power to buy what advertisers were typically selling in markets.

Facebook was troubled by the problem that it had reached user saturation in most of its major markets such as England, Canada, and United States. There were not many people left for registration. User growth prospects of the company were quite good in other parts of the world, but such signups were not earning sufficient revenue.

This, along with the looming shift to mobile, spooked mobile investors and caused the company’s IPO to tank. Its stock price dropped to around $19. Since 2012, the social network organization has remarkably shifted its focus. Instead of developing for wired populace across its head office in Menlo Park, it started to think about what turned it into an excellent experience in small towns on the other side for those who have different wallets, different carriers, and different phones.

The result was recently clarified in the blockbuster Q4 2015 earnings report. The social platform is now earning average revenue per user of $1.22 from developing regions of the world, which is almost four times greater than its earnings in 2012. It has succeeded a lot in 2015, expanding that figure 29.8% compared to both -- 3^rd quarter and the brilliant holiday quarter of 2014.

Time is on the side of the social network company. The natural utility and virility of the platform is inevitably pushing people to join. For those who have adopted earlier than others are not finding News Feed interesting due to some concerns.

Friends ask friends to join and when done so, their News Feed proves to be much addictive. They visit much often so they view more advertisements. Similarly, the time spent to use the network tells Facebook what people are interested in seeing. From liking business pages to making comments on posts regarding news articles and adding details to a user’s profile, the company collects much data for fuelling its advertisement targeting.