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Where Facebook's User Growth And Revenue Generation Is

Tyler Durden's picture




 

In the aftermath of Facebook's "blockbuster" Q1 report, the one thing everyone is talking about is the explosive, 15% growth, in Monthly Active Users to 1.28 billion. There is one problem: where said user growth is taking place.

The chart below shows MAU growth broken down by geography...

And this chart shows how much revenue Facebook generates in those specific geographies:

So yes, just 1 million users added in the US. Still, considering Facebook somehow counts 202 million monthly active users in the US, that is a phenomenal achievement considering there are 137.9 million working people. Oh well, those 62 million users who are unemployed - they will just grow into the labor force eventually and be able to buy all those products whose ads they click on.

 

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Wed, 04/23/2014 - 16:42 | 4687890 _ConanTheLibert...
_ConanTheLibertarian_'s picture

Fartbook, Fakebook, Fleecebook, Fonebook, Fuckbook, Fscambook

Wed, 04/23/2014 - 16:54 | 4687953 TruthInSunshine
TruthInSunshine's picture

Social Media is already beginning to reverse course and die, at least when it comes to the most mentioned, and past used forms of SM by the most important demographic groups.

There are many rational and GOOD reasons for this.

That advertisers haven't yet fully figured out they are being duped by Facebook's and the rest of the core SM's business model is only a matter of time and degree to resolve itself.

In the meantime, enjoy the comedy of what is now dot.com (and MOST things stock market) BUBBLE 2.0:

Farmers Only Commerical - YouTube
Wed, 04/23/2014 - 17:01 | 4687988 Seer
Seer's picture

The PROBLEM is that farmers are too fucking busy to be...

Wed, 04/23/2014 - 17:29 | 4688077 Say What Again
Say What Again's picture

Dear Ms. Yellen,

Since FB, AAPL, AMZN, and many other tech stock are doing VERY well, as are most of the banks, does this mean you will no longer need to continue QE?  Why do you think you need to continue to fund these large corporations, when they are all showing consistent YoY earnings improvements?

Back in 1996 you made strong arguments about inflationary concerns resulting from too much Fed Stimulus.

http://www.cnbc.com/id/101603539

Don't you think its time for the Fed to stop monetizing the debt?

 

SWA

Wed, 04/23/2014 - 17:30 | 4688099 Seer
Seer's picture

Old habits die hard? </sarc>

Also ask her how come oil is over $100/bbl if folks in the US are consuming less. (where's the "plus" with all that energy-independence shale oil?)

Wed, 04/23/2014 - 17:34 | 4688115 toys for tits
toys for tits's picture

Does this take into consideration the multiple accounts of people.

My daughter has over 20 so that she can troll people.  That's the ones I know of.

Wed, 04/23/2014 - 17:37 | 4688127 Say What Again
Say What Again's picture

Can you share the names of those accounts with us?

Wed, 04/23/2014 - 20:31 | 4688639 wee-weed up
wee-weed up's picture

 

 

I hear Putin has taken over the Ruskie equivalent of Facebook.

Maybe Suckerberg ought to be worried...

Then again, on second thought...

Obozo's NSA and Facefuck's Suckerberg would probably wryly smile at that caution...

Nevermind!

Wed, 04/23/2014 - 17:54 | 4688195 Seer
Seer's picture

Is that trolling thing genetic? </sarc>

Wed, 04/23/2014 - 16:54 | 4687956 Stuck on Zero
Stuck on Zero's picture

Yep.  I'm an active user.  I log in every month to turn off all the crap I get texted or emailed to me.  I don't want the crap and I can't stop.  Thus I'm an active user.

 

Wed, 04/23/2014 - 17:09 | 4688015 Sofa King Confused
Sofa King Confused's picture

US Population 318,000,000

Canada            35,000,000

Total              353,000,000

 

Facebook users 202,000,000

I believe the facebook numbers are real

/sarc

Wed, 04/23/2014 - 17:21 | 4688061 TruthInSunshine
TruthInSunshine's picture

There are "officially" 18 billion active Facebook users, currently, or 1/4 of the population.

autobot/clickbot on, bitchez!

Wed, 04/23/2014 - 17:36 | 4688123 Say What Again
Say What Again's picture

Not that I want to defend the FB numbers, but you know that there are many businesses and other organizations that have FB accounts. 

Does FB provide a breakdown of individuals vs. businesses?

But always remember that our Supreme Court has decided that Corporations are people too, so things get a cloudy about this.

Wed, 04/23/2014 - 17:53 | 4688191 TruthInSunshine
TruthInSunshine's picture

I will "buy into" the Social Media advertising monetization model when someone convinces me that a) # of clicks are even a remotely accurate way to determine that a person will spend a single cent on some product or service being hawked, and b) the # of clicks being generated isn't being MASSIVELY & FRAUDULENTLY MANIPULATED by all form of methods/devices/software, etc.

Wed, 04/23/2014 - 18:34 | 4688311 Say What Again
Say What Again's picture

As I said before, I'm not trying to defend FB.  My comment about businesses using FB has nothing to do with FB getting paid for advertising, nor am I making any comment about a correlation between clicking on an ad & ultimate consumer spending. 

I have a number of friends with small businesses, and they all have FB accounts for those businesses.  Most of them see it as a necessary cost of doing business, even if they are not crazy about FB in general.  Its almost like the Yellow-Pages from many years ago.

Then you also need to add all the little groups, like the sewing clubs, the Econ Club of Dallas, and you can see how you get more numbers than the actual population.

Wed, 04/23/2014 - 18:41 | 4688329 Confused
Confused's picture

This is really something that gets left out of the discussion. Photography pages, movie pages, music pages, local organizations, restaurants, all sorts of groups. These are all 'active' users. So it would be interesting to see how this breaks out. 

 

And besides. Who the fuck actually clicks on ads? 

Wed, 04/23/2014 - 19:36 | 4688484 Big Boss Man
Big Boss Man's picture

I've been on the net before Mozilla released the WWW. I've NEVER bought anything from any ads I've seen, I've only purchased what I was going to buy anyway but want the convenience of free home delivery.I don't even see those ads, unless they block what I'm trying to view.

Now, ads are placed in front of some news videos, and I just click off and find the info elsewhere.

Wed, 04/23/2014 - 17:43 | 4688142 Dadburnitpa
Dadburnitpa's picture

<Hey Zero>  Why the hell haven't you just deleted the account?  It is possible.  It will actually disappear 30 days after deletion.  It is not that difficult, my 15 year old daughter did it.  I independently verified it.  It was her idea, she thinks facebook is for creeps and old people.

Wed, 04/23/2014 - 18:52 | 4688346 TruthInSunshine
TruthInSunshine's picture

She can delete her account, but never her personal data & information, which has been forever assimilated into Facezborg's collective cloud conscience.

"Zuck: Yeah so if you ever need info about anyone at Harvard

Zuck: Just ask.

Zuck: I have over 4,000 emails, pictures, addresses, SNS

[Redacted Friend's Name]: What? How'd you manage that one?

Zuck: People just submitted it.

Zuck: I don't know why.

Zuck: They "trust me"

Zuck: Dumb fucks.

Wed, 04/23/2014 - 19:12 | 4688410 Dadburnitpa
Dadburnitpa's picture

Zuck is just one of the creeps she was talking about.

Wed, 04/23/2014 - 19:30 | 4688456 TheReplacement
TheReplacement's picture

What's the over-under on him surviving long enough to also be "old" someday?

Thu, 04/24/2014 - 02:23 | 4689421 TruthInSunshine
TruthInSunshine's picture

Depends on whether he becomes a threat in revealing where any of the bodies are buried.

The Inner Sanctum expects complete & total silence.

Wed, 04/23/2014 - 16:56 | 4687965 Tengri Temujin
Tengri Temujin's picture

I have said it before, there were and are tons of social media websites, the only reason Facebook became big is because the Big Media promoted it like crazy from daily shows to evening news.  Why was it so heavily promoted over other sites I leave that to you to figure out, its not hard.

 

Wed, 04/23/2014 - 18:28 | 4688304 in4mayshun
in4mayshun's picture

Only reason Facebook blew up is because they sold out to the NSA, hence the promotion by the MSM.

Wed, 04/23/2014 - 16:58 | 4687966 Cthonic
Cthonic's picture

Facecrook is but one touch stone on the path to Total Information Awareness, Main Core, DARPA LifeLog, Global Surveillance Directorate, Skynet, The Matrix.  Or did that already happen?

Wed, 04/23/2014 - 17:56 | 4688202 Seer
Seer's picture

"Facecrook"

I thought I read "Facecrock," which, IMO, is better, even if I say so myself!

Wed, 04/23/2014 - 18:51 | 4688354 The 22nd Prime
The 22nd Prime's picture

"FaceInvader" and "Gulag+"

Wed, 04/23/2014 - 18:59 | 4688378 tempo
tempo's picture

FB is FREEEEEE!! So people use it.

Wed, 04/23/2014 - 16:38 | 4687896 Cangaroo.TNT
Cangaroo.TNT's picture

I'm employed and do not use Facebook.  Neither do 2 other guys in the office.  I'm sure we are the only ones, so that must mean there are 62,000,003 unemployed FB users.

Wed, 04/23/2014 - 16:46 | 4687922 ParkAveFlasher
ParkAveFlasher's picture

...that Facebook is monetizing...

Wed, 04/23/2014 - 17:05 | 4688004 0b1knob
0b1knob's picture

Why all the hate for funemployed people?

Hey advertising works for all that EBT money too.   And extended (forever?) unemploymnet benefits. And they got those free Obamaphones to see the ads too.

Wed, 04/23/2014 - 17:12 | 4688021 RafterManFMJ
RafterManFMJ's picture

Wait, you have a job, and you don't use Facebook? Wow, what kind of freak are you?

Next you'll say you don't own a TV and don't vote.

Wed, 04/23/2014 - 17:57 | 4688207 Seer
Seer's picture

Stop it, man, you're freaking me out!

Wed, 04/23/2014 - 16:40 | 4687901 ebworthen
ebworthen's picture

Have they offshored all their profits yet?

Looks like Zuckerberg should be moving to Singapore.

I'd bet the MySpace trends were similar, and Netscape usage back in the day.

Wed, 04/23/2014 - 19:33 | 4688468 Georgia_Boy
Georgia_Boy's picture

AOL 2000 = Facebook 2015

Thu, 04/24/2014 - 02:25 | 4689422 TruthInSunshine
TruthInSunshine's picture

"Looks like Zuckerberg should be moving to Singapore."

My Yellens on Israel.

Wed, 04/23/2014 - 16:41 | 4687906 onewayticket2
onewayticket2's picture

the "like" scam probably didnt help ad revenue too much

Wed, 04/23/2014 - 16:41 | 4687909 Seer
Seer's picture

"those 62 million users who are unemployed - they will just grow into the labor force eventually and be able to buy all those products whose ads they click on."

Nice to finally hear good news.  Let's be sure to let those unemployed folks know so that their spirits are lifted!

</sarc>

Wed, 04/23/2014 - 16:47 | 4687927 Sudden Debt
Sudden Debt's picture

You can't play on game center anymore without a facebook account.
So millions of people made accounts in order to play pad games and link their buddies for gems in the games.
They don't really use the facebook but the accounts are made.

I'm pretty sure that's the biggest part of new users. Totally worthless.

Wed, 04/23/2014 - 16:54 | 4687950 Seer
Seer's picture

I figured that the peak was Farmville (it's like the gods laughing at us).

http://cdn.someecards.com/someecards/filestorage/partner-virtual-farm-fl...

Wed, 04/23/2014 - 19:41 | 4688500 Georgia_Boy
Georgia_Boy's picture

Heh, looks like it's time for this story again ... I was trying to finish Angry Birds on iPhone. But there were three levels you couldn't get to unless you liked Angry Birds on Facebook. (Which miffed me a bit because I paid for the game, why should I have to like you on a social nerwork I don't use?) So I create an account using the name of an old boss of mine, my brother's birthday except change the year, and for the city put where I went to college. Logged in and duly liked angry birds. Then Facebook suggested someone it thought I knew and asked if I wanted to friend request her (nobody I'd ever heard of). I laughed and clicked yes, and logged out. Never logged back in again to see if she actually friended me.

Wed, 04/23/2014 - 16:41 | 4687910 centerline
centerline's picture

Slavebook.

Wed, 04/23/2014 - 18:16 | 4688268 Sokhmate
Sokhmate's picture

FeceBook

Wed, 04/23/2014 - 16:43 | 4687912 Sudden Debt
Sudden Debt's picture

I've heard there's about 250 million new users on Antartica who all joined last month!!

Wed, 04/23/2014 - 16:47 | 4687926 ParkAveFlasher
ParkAveFlasher's picture

"weather today is COLD.  FML!  lulz."

249,999,999 likes

Thu, 04/24/2014 - 02:29 | 4689426 TruthInSunshine
TruthInSunshine's picture

That pretty much sums things up re FarceBark as well as anything.

Wed, 04/23/2014 - 16:44 | 4687914 jay28elle
jay28elle's picture

Oh, BFD... don't look at the details, just drink the damn koolaid.

Wed, 04/23/2014 - 16:44 | 4687915 Madcow
Madcow's picture

Social media is the future of marketing - say the experts at this years social media marketing conference - 

watch this - and then try not to short FB - 

 

https://www.youtube.com/watch?v=itvvFfeLh84#t=131


Wed, 04/23/2014 - 17:02 | 4687993 Tengri Temujin
Tengri Temujin's picture

I dont blame you for being a mad cow after watching that video.  What kind of people are we putting out of these colleges?  Some dimwit chick singing about social media to a bunch of lard asses while everything around them is made in china.  This country is TOAST !

Wed, 04/23/2014 - 17:29 | 4688094 DetectiveStern
DetectiveStern's picture

That is the worst thing I have ever heard.

Wed, 04/23/2014 - 17:38 | 4688133 Bernoulli
Bernoulli's picture

take a selfie

let's get social

hashtag

 

 

Wed, 04/23/2014 - 18:03 | 4688235 newworldorder
newworldorder's picture

Social media is the "new religion" of the under 40 years old crowd. If you have not made it to the various churches, (faceb, twit, etc.,) you are old school and not with the "connected" crowd.

Wed, 04/23/2014 - 16:46 | 4687920 mayhem_korner
mayhem_korner's picture

Facebook somehow counts 202 million monthly active users in the US, that is a phenomenal achievement considering there are 137.9 million working people

 

But each NSA worker has 10-12 accounts, plus their personal ones at home.

Wed, 04/23/2014 - 16:46 | 4687921 Lendo
Lendo's picture

Again, trading at 200X per earnings is complete nonsense.  

So are the number of active users they claim, which we know are mostly bots.  Deleted my account in 2009 shortly after finding ZeroHedge :) 

Wed, 04/23/2014 - 16:47 | 4687923 slightlyskeptical
slightlyskeptical's picture

The point is that they have 15-16% US Users who generate more than half of their revenues. The large user growth is coming in areas in which they make less of a buck.

Wed, 04/23/2014 - 16:56 | 4687968 Seer
Seer's picture

Is it the "users" that are "generating" the growth or is it just stupid marketing types/businesses (desperate for anything to create business [when everything else is failing- only hope is to brainwash a new crowd of "future" consumers (who will always be too borke to buy the shit)?

Wed, 04/23/2014 - 16:47 | 4687924 cowdiddly
cowdiddly's picture

LOL,about 5 more quarters of that kinda book cookin and I will be the only one left on the planet who does'nt use Farcebook. No wonder the CFO is heading for the hills. What a joke.

Wed, 04/23/2014 - 17:55 | 4688199 newworldorder
newworldorder's picture

You are not the only one. Ditto here.

Wed, 04/23/2014 - 16:48 | 4687928 Smegley Wanxalot
Smegley Wanxalot's picture

What they define as active makes a big deal.  I have an account under a fake name and zero details (other than my location is Troll City, Antarctica) that I logged in on last month to be sure it wasn't deleted yet, like my other fake account was (they emailed and said they thought the name Smegley Wanxalot did not sound real, and deleted the account).

So I was active ... long enough to log in and out.  Fuck Facebook.

Wed, 04/23/2014 - 18:18 | 4688271 Baby Eating Dingo22
Baby Eating Dingo22's picture

So everytime some site flashes you the big blue F and you click it, you're an active user?

I must be about 6-700 hundred users all by my lonesome self

 

Wed, 04/23/2014 - 19:18 | 4688428 Smegley Wanxalot
Smegley Wanxalot's picture

Actually, I have everything "Facebook" blocked on my laptop but Facebook itself.  I see no big blue F or comments or anything.  If they revoked that second fake account, I wouldn't fucking care a bit, but I do like the location of Troll Station, Antarctica.  Great name for a town.

Wed, 04/23/2014 - 16:48 | 4687933 laomei
laomei's picture

It's all just cooked book accounting of what constitutes an "active" user.  Run across any facebook ad? You're active.  Use a facebook-linked commenting system? You're active.  Sign up with or sign into a site that uses facebook for login? You're active.  

Wed, 04/23/2014 - 17:04 | 4687940 Chuck Knoblauch
Chuck Knoblauch's picture

How much of the heroin sold worldwide is laundered through this company?

Money laundering is profitable!

The shareholders don't care how they make money.

 

 

Wed, 04/23/2014 - 16:58 | 4687976 Agent P
Agent P's picture

Of the five people in my household, only one uses facebook.  More than half the people I work with do not use facebook.  My parents do not use facebook.  My wife's parents do not use facebook.  My wife's grandparents do not use facebook.....I realize this is extremely anecdotal evidence, but I'd have to say that 202 million monthly active US users is total bullshit! 

Wed, 04/23/2014 - 17:27 | 4688086 Seer
Seer's picture

You know what happens when you make it hard for the NSA to do its job...

Wed, 04/23/2014 - 17:44 | 4688129 Agent P
Agent P's picture

NSA conspiracies aside, I view facebook as the biggest waste of time ever invented.  My wife will disappear into her phone/computer and be completely oblivious as to what's going on around her.  When she finally comes up for air, I usually say something along the lines of "Here's what you missed in your kids' lives while you were away...now, which one of your "friends" is claiming to have an OMG, Best Time Ever! night with their family while actually only posting and voyeuristically reading facebook?"

She gets pissed...I don't fucking care...I hate facebook. 

Wed, 04/23/2014 - 18:00 | 4688224 Seer
Seer's picture

I"m in total agreement with you.

My wife uses FB, but it's really for keeping in touch with relatives who are a LONG way away (and poor).  It oculd be worse, it could be TV...

Thu, 04/24/2014 - 17:38 | 4692647 mkkby
mkkby's picture

You are clueless.  She is having affairs with men she  "friends" on facebook, and she's using it to send them naked pictures, meetup times, etc.  That's why it's so absorbing.

Fri, 04/25/2014 - 12:18 | 4695646 Agent P
Agent P's picture

If you say so. 

Wed, 04/23/2014 - 17:21 | 4688060 Last of the Mid...
Last of the Middle Class's picture

Fuckbook attracts the low info viewers that the government mediated news sites promote as technologically "in" and "current" personally I use it to check on guns and ammo for sale in my general area. They stop those sites the fbook can go to hell. I still maintain there was a ton of government money and influence that brought this social site bullshit about for it's own purposes. Whatever could that be i wonder? 

Wed, 04/23/2014 - 17:44 | 4688096 cowdiddly
cowdiddly's picture

Yep that 52 million people in the new NSA Face recognition program will be a snap with a simple reformat of the data and simply dropping the book part to just FACE. Its almost as if the were hinting at what they were doing with the name. All willfully supplied by the hoards of mindless sheep and a CEo that is willing to sell out his cofounder for the money, much less the millions of users. Too fackin easy- even they already admitted it.

This is their darlin and will never see an audit.

Wed, 04/23/2014 - 17:22 | 4688063 buzzsaw99
buzzsaw99's picture

It's a good thing the people paying for those facebook ads think they really work or else that company wouldn't be worth diddly

Wed, 04/23/2014 - 21:41 | 4688899 Aussiekiwi
Aussiekiwi's picture

Fortunately FB has hundreds of thousands of 'CLICK' shops in asia to click on all those ads to give the advertisers the hope that their ads are working and to keep it all going.

Wed, 04/23/2014 - 17:34 | 4688109 Notsobadwlad
Notsobadwlad's picture

Something has never really added up for me.

Where does all of the new advertising money, that funds almost 100% of all non-retail internet company revenue, come from.

Only a tiny fraction of it could have been reallocated from print ads, television and radio (since those areas have not in total declined) and company advertising budgets have not swollen dramatically as a perentage of revenue.

Is it all from supposed growth (or inflation) in the economy?

Seriously, $10 billion in annual advertising for facebook, much much more for Google... and the thousands of other companies.

It does not pass the smell test.

Wed, 04/23/2014 - 18:05 | 4688239 Seer
Seer's picture

Clearly it deserves all the cynicism that can be generated, but I also think that there's an element of desperation happening here.  I think that growth markets are so non-existent that advertisers are so panic-y that they'll try anything; and I think their mindset is that they'll get rewarded as soon as the economy takes off... (which it never will, but that's how these things always go; the Easter Islanders were carving statues up until the very end- you do that which you know how to do)

Wed, 04/23/2014 - 17:35 | 4688118 chuckroan
chuckroan's picture

According to the 2012 census.... There were 230 mil people between 15-74. Hmmmm

206 mil from 15-64... So looks like Facebook got em all. Maybe they expand into the geriatric crowd.

Wed, 04/23/2014 - 17:46 | 4688169 Agent P
Agent P's picture

one word: cats

Wed, 04/23/2014 - 18:03 | 4688234 Silver Exterior
Silver Exterior's picture

Crooks will be crooks... B*

Wed, 04/23/2014 - 19:14 | 4688413 Hurdy Gurdy Man
Hurdy Gurdy Man's picture

I saw this... https://www.youtube.com/watch?v=oVfHeWTKjag ... and now wonder whether the click-farms are also buying advertising to boost the demographics. Hilarious!

Wed, 04/23/2014 - 19:19 | 4688425 messymerry
messymerry's picture

FB is a feedlot.  Two things happen at a feedlot.  The sick get weeded out and the rest get fattened up.  As you can see from Tyler's earlier article, the fattening up process is going swimmingly.  As for myself.  I stay away from FB, 'cause I will be quickly weeded out...

;-D

Wed, 04/23/2014 - 19:31 | 4688462 Georgia_Boy
Georgia_Boy's picture

I would count AOL-Time Warner as the M&A jump the shark moment of the last tech boom ... the one deal that most made people turn off the hype.

AOL must have known where their demographic was going (think Viagra ads). They needed a more established business to prop themselves up once the likely 90 percent loss of market cap set in. Guess who's in the same overvalued spot this time around, and headed down the same road?

So what's going to be Facebook's AOLTimeWarner moment, who are they going to use all that muppet cash to buy? When that happens, run for the exits baby.

Wed, 04/23/2014 - 21:37 | 4688886 Aussiekiwi
Aussiekiwi's picture

I click on those Viagra ads like crazy, I don't want advertisers to get discouraged...supports important.

Wed, 04/23/2014 - 19:33 | 4688469 Max Cynical
Max Cynical's picture

Could it be the weather holding back explosive growth?

Wed, 04/23/2014 - 21:36 | 4688880 Aussiekiwi
Aussiekiwi's picture

Yes, Ithink your right, when its hot and sunny everybody is out playing sports instead of being on Facebook and when its cold the Internet slows down so people use it less.

Wed, 04/23/2014 - 22:49 | 4689119 highwaytoserfdom
highwaytoserfdom's picture

50 million facial  recognition on NSA database off Face Book..   My dog sat on my phone and picture put Clapper on the do not Fly list on a match.  Weiners picture scanned and put the whole analyst community in the terror suspect list.

Thu, 04/24/2014 - 00:28 | 4689297 fishwharf
fishwharf's picture

This explains everything: https://www.facebook.com/KimKardashian

Thu, 04/24/2014 - 01:35 | 4689386 Ward no. 6
Ward no. 6's picture

i am not on facebook

i could care less about keeping in touch with relatives

nor do i care to become gossip at work

i am on twitter tho

it is ok but not that great

Thu, 04/24/2014 - 06:50 | 4689680 Angry Plant
Angry Plant's picture

So peak facebook in US with end stage user growth happening in Europe. Rest of world is still growing but low revenue per user from them. Aisa is the only market with growing revenue.

So once hyper nationalist asians decide to drop facebook for a local homegrown country based clone of facebook the revenue collapse of facebook in near future is all but certain.

 

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