Facebook provides a huge value to millions of users all around the world. But why is one of the most popular products in the world free to use? Because you the user, are the product.
Facebook makes the most money off of users in the U.S. and Canada. Each of these users generated an average of $26.76 in revenue for Facebook in the fourth quarter of 2017. Almost 100 percent of that comes from advertising. If you look all of 2017 as a whole, the numbers are even higher at $84.41 per user. If you are a Facebook user in this region, you have the highest value on your head compared to any other region in the world.
Facebook has a total of over 2 billion monthly active user. 184 million of those user are in the U.S. and Canada as of the fourth quarter in 2017. That number is actually down by about 1 million the previous quarter.
Regions outside of the U.S. and Canada are not nearly as lucrative for Facebook, but they’re still huge revenue generators. Some of these regions actually are growing more quickly than the U.S. and Canada, but do not generate as much revenue due to cultures in advertising.
The revenue per European user in 2017 was $27.41, not nearly as much as U.S. and Canada users generate. Facebook is banned in China and must rely on other countries in the Asia-Pacific region to generate revenue. The average revenue per user in the Asia-Pacific region was $8.92 in 2017.
Facebook generated $40.65 billion in revenue during 2017. Only $711 million of that came from receiving payments. $39.94 billion came from advertising.
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