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In Western society maybe but in emerging markets Facebook is still huge. And for many em small businesses it is their only online presence.
by Jsharm 8y ago
In Western society maybe but in emerging markets Facebook is still huge. And for many em small businesses it is their only online presence.
- JumpCrisscross 8y ago> In Western society maybe but in emerging markets Facebook is still huge Americans and Canadians earn Facebook over 4x per user what Europeans do and over 10x what Asia Pacific users do [1]. Facebook's user base shifting overseas implies a massive revenue drop (and corresponding adjustment to value). [1] https://www.statista.com/statistics/251328/facebooks-average-revenue-per-user-by-region/ https://www.statista.com/statistics/251328/facebooks-average...
- fwn 8y agoAssuming that their earnings per Asian user do not increase, they need 10 Asian users for every US American user? That doesn't sound unrealistic.
- JumpCrisscross 8y ago> they need 10 Asian users for every US American user? Assuming the tenth Asian user (a) is as lucrative as the first and (b) costs 1/10th as much to provide services to as an American user, sure. I'm doubtful about those assumptions. And this is all just for treading water.
- fwn 8y agoThe tenth Asian user is not as lucrative as the first. Those numbers have to be averages.
- puranjay 8y agoThe trouble is that the people who are fooled by Facebook in emerging markets aren't likely to be a big source of profit for Facebook. In India, for instance, Facebook is especially popular among old people like my parents, or poorer people. The former won't spent much money online because habit. The latter don't have much money to spend.