Facebook advertising revenue – additional information
Facebook’s business model heavily relies on ads, as the majority of social network’s revenue comes from advertising. In 2018, about 98 percent of Facebook's global revenue was generated from advertising, whereas only around two percent was generated by payments and other fees revenue. Facebook ad revenue stood at more than 39.9 billion U.S. dollars in 2017, a new record for the company and a significant increase in comparison to the previous years. For instance, the social network generated almost seven billion U.S. dollars in ad revenue in 2013, about 10 billion less than the 2015 figure.
Facebook's average revenue per user also significantly increased in the same time span, going from 6.81 U.S. dollars in 2013 to 24.96 U.S. dollars in 2018. The U.S. and Canada are important markets for Facebook, considering the average revenue per user (ARPU) in these two countries is far above the global average. Facebook’s ARPU in the U.S. and Canada was 34.86 U.S. dollars in the last quarter of 2018, while the global average was 7.37 U.S. dollars. In Europe, Facebook’s average revenue per user was 10.98 U.S. dollars during the same time period.
In terms of segments, mobile is the most promising advertising form for the company. In 2017, Facebook’s mobile advertising revenue already accounted for 88 percent of the social network’s total advertising revenue. Facebook’s mobile advertising revenue is projected to grow from an estimate of 13 billion U.S. dollars in 2015 to 60.68 billion U.S. dollars by 2021, and drive the company’s growth in the coming years.