When you hear the term "social media" the first two things that come to mind are Facebook and Twitter. Other platforms have come and gone throughout the years. And growth on Twitter seems to have stalled recently. Yet Facebook has managed to hold steady, and maintain its position at the top of the social media "food chain." And if you think momentum is slowing down, you're wrong.
This past Wednesday, during its quarterly earnings call, Facebook reported that it now has 1.59 billion users worldwide. And those aren't even annual figures, they're monthly. The report showed that the number of users has grown by 40 million since the last quarterly report.
When you consider that the Internet has 3.2 billion users worldwide, Facebook has attracted a pretty big slice. Close to 50% to be exact.
Another interesting fact that came out of the report was just how much each user is worth to Facebook. The company uses targeted advertising to generate revenue, using the information it gathers on your "likes" and posts to place more relevant ads in front of you. And it seems to be working. According to the report, Facebook's 1.4 million mobile users generated 80% of its overall revenue.
So, when you break down all of the numbers, how much revenue do you and I generate for Facebook? The answer is surprising. Facebook values each user around $3.73 per quarter. People from different regions are also valued differently. Canadian users, for example, are worth $13.54, while some regions in Asia are worth only $1.59.
Does this mean you mean less to Facebook than a Canadian user? Not necessarily. Facebook designs its products and services with the overall user experience in mind. However, advertising dollars are allocated according to estimated return on investment costs. In the end, it's all just business.