Facebook’s Crunch Conquest: By Relying Largely On The US Market, Is Facebook Running a Risk?

The US & Canada region accounts for nearly 50% of Facebook's quarterly revenue, but it's APAC region which houses over 40% of users base and driving the growth. Let's deep dive into Facebook's growth pattern to understand if social media leviathan may soon be facing the biggest challenge since existence.

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Two billion! That’s Facebook, Inc. (NASDAQ: FB) for you – Right when you thought that this social-media giant has already connected the entire world, it’s proving that it can grow faster than ever before. In terms of logged-in users, Facebook ranks much above YouTube’s over 1 billion, Twitter’s 326 million and Snapchat’s 186 million.

However, in a recent development, one observation leads to another; After covering developed regions, in the last half a decade Facebook’s growth has been fuelled by the developing world. With relentlessly optimized apps for low-bandwidth connections, it has somehow started high-reaching regions that were earlier not held so significant in terms of revenue-profits metrics.

With this whole digital evolution curve and with the trends being set, the developed countries like the U.S and Europe have been most affected by Facebook reflex. Anyway, the social media titan has been latching onto these main markets for the huge advertising revenue they garner in! It’s no hush-hush secret that the homegrown U.S. market has been Facebook’s very own velvet runway since this is where the lion’s share of Facebook’s future growth has always been dependent on. That being said, here’s a wrap of what all debrief revolves around Facebook:

  • Although revenue keeps rising, why is the Silicon Valley giant witnessing a slow growth?
  • Has the user growth of Facebook in the U.S market hit the saturation point?
  • Highest in terms of user-growth, can APAC be the next profit centre for Facebook?
  • Is the “Law of Large Numbers” finally affecting Facebook?
  • The increasing dependency on US & Canada market for revenue growth leading Facebook to a hapless fate?

The deep dive into the above questions unravel some very surprising facts that portray the future of Facebook like never seen before.

 

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Divya Nayakhttp://dazeinfo.com
Computer Science Engineer and a wee-hour-writer. An ardent reader and if books were in bribe, might turn corrupt.

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