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Inside Facebook’s Fastest-Growing Geographic Markets

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APAC audience increased 26.2%

Facebook (FB) breaks down its revenue and audience metrics by geography. In 3Q17, Asia-Pacific (or APAC) emerged as the company’s fastest-growing region by audience (monthly active users), while ROW (Rest of World) was the fastest-growing region by revenue.

Facebook’s APAC audience base expanded 26.2% YoY (year-over-year) in 3Q17 compared with 15%, 6.4%, and 4.4% YoY for ROW, Europe (EFA), and the United States (SPY) and Canada regions, respectively, in the same period.

APAC was also Facebook’s fastest-growing region by audience in 2Q17 and 3Q16. Facebook’s APAC audience increased 27.7% and 20.5% YoY in 2Q17 and 3Q16, respectively.

APAC overtook North America in digital ad spending

Strong audience growth in APAC could bode well for Facebook, considering the rosy projections for the region’s digital advertising industry. According to investment research firm Zenith, APAC’s advertising market will register the fastest growth between 2016 and 2019 compared with other regions such as North America, Europe, and South America. Zenith predicts that APAC’s ad spending will expand by $30 billion by the end 2019, while it says that North America’s and Western Europe’s ad spending will expand by $20 billion and $8 billion, respectively, over the same period.

According to business consulting firm Strategy Analytics, APAC overtook North America as the world’s largest digital advertising market in 2016. China (MCHI) is viewed as the force behind the strong growth in APAC’s digital advertising market.

ROW led revenue growth in 3Q17

On a revenue basis, ROW was Facebook’s fastest-growing region in 3Q17. Facebook’s revenue from ROW increased 57.1% YoY compared with 56.3% for Europe and 50% for APAC. The United States and Canada region recorded a 38.9% increase in revenue. ROW consists of emerging markets (EEM) in Africa, the Middle East, and South America.

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