Facebook: Average Revenue Per User (ARPU) by Region
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This article discusses data on Facebook average revenue per user (ARPU) by region. Advertising ARPU stands for average advertising revenue per user.
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This article discusses data on Facebook average revenue per user (ARPU) by region. Advertising ARPU stands for average advertising revenue per user. It is computed as follows:
| ARPU = (Total advertising revenue over a fiscal period/Average users over the same fiscal period) |
Where,
Average users = (Beginning users + Ending users)/2
Importance of tracking advertising ARPU by region
ARPU is a non-GAAP measure of the advertising revenue generated per user/subscriber of Facebook over a given fiscal period. It used to track the revenue growth of the company at a micro-level and hence is an important growth driver. It can also be used to find out how well Facebook can monetize its advertisements among its user base located in different regions.
Advertising Average Revenue Per User by region on Facebook as a metric
A relatively higher advertising ARPU would be a positive performance indicator for a region.
Analysis of the performance of Facebook based on advertising ARPU by region
Facebook’s ad ARPU declined by 6.42% from Q4 FY 2018 to Q1 FY 2019, compared to a 2.78% quarterly fall in Q1 FY 2018. There was an improvement in Q3 FY 219 with an increase in QoQ growth rate from 2.31% in Q3 FY 2018 to 6.98%.
ARPU in Europe has been on the downswing since the first quarter of FY 2019. This was unexpected as this decline was immediately preceded by a 24.51% QoQ increase in Q4 FY 2018.
The rest of the world witnessed an ebb and flow trend in its ARPU. For instance, in Q2 FY 2018, there was a QoQ growth of 13.77% followed by a 4.74% decline in Q3. This was succeeded by a 16.57% rise in Q4 and then a 10.90% decline in Q1 FY 2019.
The U.S. and Canada region have faced a 25-30% ARPU growth in each of the fourth quarter since FY 2016. The total worldwide ARPU has followed a similar pattern as that of U.S. and Canada with a 20%+ growth rate in the fourth quarter and a decline in the first quarter of every fiscal year till date.
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