Overseas market a key advertising revenue driver for Facebook
According to a Jennifer Saba report published by Reuters on June 10, Facebook (FB) executives revealed that in the first quarter of fiscal 2015, the company made 51% of its global ad sales in the overseas market. Mobile advertising constituted 70% of global ad revenue in the quarter.
This is the first time Facebook has revealed advertising sales figures from outside the US and Canada. Facebook recently shifted its focus to the emerging markets, which have huge revenue potential. The Asia-Pacific region, in particular, saw ad revenues rise by 57% in the first quarter ending March 2015, putting it way ahead of Europe.
China (FXI) and India are proving lucrative for Facebook. Why? For one, businesses in China are focusing heavily on cross-border sales, and they’re using Facebook to market their products overseas. Meanwhile, in India, there’s currently a boom in the e-commerce sector, and more and more startups are using Facebook’s platform to reach out to consumers.
Mobile drives revenue growth
In 1Q15, Facebook achieved 46% YoY (year-over-year) revenue growth in its advertisement business. As you can see in the above chart, growth rates had slowed over the past few quarters. This quarter, mobile advertising was largely responsible for the boost.
This isn’t a surprise considering the kinds of rapid strides that Facebook is making in the worldwide mobile Internet ad market. According to a report from eMarketer, it’s estimated that Facebook’s share of the mobile Internet ad market rose from ~5% in 2012 to ~22% in 2014.