China is a huge market for Facebook advertising revenue – even though the social media network is actually banned in the country. Around 10% or $5 billion of Facebook’s revenue comes from China, according to research by Pivotal, making the country second-largest in terms of ad spend – only trailing the US.
According to Brian Wieser, a research analyst at Pivotal and the report, Facebook recently changed the way its revenue can be viewed. That means it is now disclosing the billing addresses of advertisers.
The report also predicts that around $1 billion to $1.5 billion of the revenue on Facebook can be attributed to mobile app developers. The rest is coming from different industries.
It is expected that China will likely increase ad spend on Facebook in the near future, which could up the competitive space for US-based advertisers.
Instead of merely catering ads to its own local market, Chinese marketers and brands understand the benefits of reaching audiences worldwide. For example, many phones and mobile gaming apps are coming out of China already.
“Chinese companies want to reach consumers overseas for either business-to-business or business-to-consumer,” Saul Gitlin, a senior marketer at Mount Sinai International told AdAge. “The biggest chunk is likely advertising from Chinese businesses large and small that are trying to reach consumers overseas.”
However, the launch of agencies based in China that cater to Facebook advertising is increasing only slowly. Cheetah Mobile, Meetsocial, Powerwin and Papaya are those currently verified by Facebook itself.