Who said there was no such thing as a money tree? Facebook has 2.3 billion of them. While it’s no secret Facebook makes a lot of money, the staggering growth of Facebook’s revenue doesn’t get the attention it deserves. Especially when Facebook’s user base only grew in the single-digits this year.
In 2018, Facebook’s monthly and daily active users both grew by 9%. Facebook’s revenue on the other hand grew by 37%, which is 311% faster growth than their active user base. To fully appreciate Facebook’s revenue growth, it helps to look at Facebook from a new perspective.
Facebook Average Revenue Per User
Check out this chart I made of Facebook’s ARPU growth over the last 8 years:
The first obvious note is that Facebook’s S-Curve is showing no signs of slowing down. Every single geographic segment Facebook reports has grown in revenue each of the last 8 years. Facebook’s ARPU globally is $25 per year, while companies like Twitter and Snap have ARPU figures of $9 and $6 respectively*.
But that’s not the most interesting part to me. Look at the blue line, which shows Facebook’s North American ARPU.
Facebook is making $112 per year on the average North American monthly active user.
That’s nuts, and based on past growth, their North American ARPU could approach $150 per year in 2019. Many avid Facebook users are contributing far more revenue than the chart above shows, keep in mind that it depicts averages among monthly active users.
Related Posts:We truly are under attack. We need user support now more than ever! For as little as $10, you can support the IWB directly – and it only takes a minute. Thank you. 647 views