Facebook said during its IPO roadshow that US users generated $9.51 in ad revenue per user last year, while those numbers were $4.86 for European users, $1.79 for Asian users and just $1.42 for the rest of the world.
This is a big gap, and it will take a long time to narrow it as Facebook needs to build up its international sales force, and it probably won’t ever close completely.
Facebook needs to find revenue growth. Because of its torrid international user growth, some observers think it will come from international ad revenue. We don’t think that’s likely; we explain why in a note this morning →
Photo: BI Intelligence
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