Despite the Ban – Facebook Still Earned $5 Billion From China
February 12, 2019
In what will solely be further proof of the worldwide reach of Facebook, reports show that the social media platform earned $5 billion in revenue from China. Yet Facebook has been prohibited in China since 2009.
CHINA IS FACEBOOK 5TH LARGEST MARKET
According to reporting by TheStreet and a research note from Pivotal, it’s estimated that Facebook made anywhere between $5 billion and $7 billion from Chinese advertisers. This figure is regarding 100% of Facebook’s 2018 revenue.
Facebook’s 2018 filing confirms that revenue came from resellers “representing advertisers” primarily based in China. Facebook apparently has an unofficial Chinese workplace, through its links with a Chinese company called Meet Social. Meet Social, as per other reporting, places 20,000 adverts per day on Facebook via its software platform.
The social media company, with an almost monopoly on our online friendships, has its largest market in the US. Its second largest market is Russia, followed by Turkey and Canada.
There has been speculation that Russia might additionally ban Facebook within the country for not yielding with data regulation laws. In Russia, online service companies and platforms should solely store the information of Russian citizens on Russian soil. Russian regulators have however to be convinced that Facebook is obliging, or that it will. Twitter too is under scrutiny in Russia.
Zuckerberg said in 2015:
Obviously, you can’t have a mission of wanting to connect everybody in the world and pass over the largest country.
It appears Facebook has still found the simplest way to take advantage of China’s huge market. A social media market presently dominated by Tencent, that operates WeChat and QQ, accounting for several Chinese social media users still stands as facebook major competitor.