With
all this hype about the expected continued growth in the social media industry and
the dominance of Facebook in this industry, are these growth trends as likely
to increase as so many people say or how much of this is just advertising
fluff?
If advertising through Facebook is as important as some people claim then how much of my advertising budget should I allocate to Facebook advertising? Or is Facebook just another fad that will pass like MySpace even though it is very different?
If advertising through Facebook is as important as some people claim then how much of my advertising budget should I allocate to Facebook advertising? Or is Facebook just another fad that will pass like MySpace even though it is very different?
The
answer to the question about Facebook trends is that while the Facebook user base
IS growing, most of this expected growth is expected to come from countries
such as China, India and Brazil (1). Facebook has even stated that they forecast stagnant to diminishing growth of their user base in the United States,
Canada and Europe. From what I have read in Facebook’s last quarterly report on social media market outlook conditions, these changes and trends in social
media technology are due to IT improvements. This is because smartphone
technology has been getting cheaper and cheaper. All these millions of “would
be” social media users in developing markets who historically have never had
internet access because they cannot afford to purchase personal computers will
begin to have internet access though their smartphones as smartphones are
expected to enter these markets.
So what do these market
trends mean to my business and my marketing dollars on Facebook analytics?
This
means that most of this hype about the explosive future growth of the Facebook user
base is not only going to NOT involve users in the United States or Europe, but
it will also NOT even involve the English language. The question then becomes,
if this is the case, then do I want to increase my investment in targeting this
growing segment of users in these countries and are my products
or services relevant to these users?
This
can be helpful to keep in perspective before you decide to triple your budget
on Facebook advertising based on “dramatic growth” forecasts or
purchase more extensive services from any of the companies allowing you to
outsource your social media analytic needs.
Facebook
social media market analysts have further stated that along with this trend of
an increasingly foreign Facebook user base using smartphones as their only
method of internet access, advertising revenue will have to be increasingly
based on mobile advertising. Traditional PC users are expected to stagnate and
decline. Will the same Facebook advertising strategies that were once
successful on a PC screen still work on a tiny smartphone?
These
changes can dramatically impact the quality and the breadth of data that can come
from Facebook targeted advertising. The level of involvement with many websites
is very different on a PC from a smartphone. How many people comment on posts
from a smartphone? Will the future of Facebook analytics become even more
limited by this trend to only measure “likes”?
·
How big is their user base?
How
Facebook uses 2 metrics they call “Monthly Active Users” or “MAUs” (logged in within the last month via any method (computer, tablet, mobile… etc.) and “Daily Active Users” or “DAUs”. Here are some handpicked metrics I pulled from their most recent report filed with the SEC.
Current
MAUs by region
Worldwide
users 1,007,000,000 –increasing about 52 million per quarter
USA
& Canada =189,000,000 –increasing steadily at a rate about 3 million per
quarter
Europe
=253,000,000 – increasing at about 9 million per quarter
Asia=277,000,000
–increasing at about 20 million per quarter
Rest
of the World =288,000,000 –also increasing about 20 million per quarter
Note that the USA is the slowest MAU
growing market for Facebook
Current
DAUs by region
Worldwide
users 584,000,000 –increasing about 33 million per quarter
USA
& Canada =132,000,000 –increasing steadily at a rate about 3 million per
quarter
Europe
=160,000,000 – increasing at about 7 million per quarter
Asia=141,000,000
–increasing at about 11 million per quarter
Rest
of the World =152,000,000 –increasing about 12 million per quarter
Note again that the USA is the
slowest DAU growing market for Facebook
Segmented
for Mobile users only
Worldwide
users of mobile =604,000,000
Sources:
Nice article, would be interesting to see if they can successfully capitalize on this growth.
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