What’s fueling Facebook’s growth – Doug Flynn


Facebook’s growth has been amazing to say the least, as the Zuckerberg-led social media giant kept expanding its revenue and user base at a furious pace over the last several years, growing into a more mature advertising platform.

While Facebook’s long-term growth prospects look strong because of relatively low penetration in emerging markets, what about short- to medium-term growth? Is high penetration in developed markets going to end their growth streak soon, or can it sustain itself over the next few years until emerging markets can adequately support it? Growth in emerging markets doesn’t tell the whole story. It’s the company’s own back yard that we need to look at very carefully.

A closer look at Facebook’s past growth pattern reveals that there is one region playing a huge role. And it’s actually great news for the company because this region still offers plenty of room to improve Facebook’s numbers over the next several years – and that region, surprisingly, is North America.

During the second quarter of 2017, Facebook reported advertising revenues of $9,164 million, compared to $6,239 million the year before, or a 47% increase. Between the second quarter of this year and the prior period, Facebook’s monthly active user base expanded by 294 million. If we further break that number down, Rest of the World added 98 million users, Asia Pacific added 164 million, US and Canada added 22 million and Europe added 10 million.

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