Slide #3 & #5 are super interesting.
US/Canada is ~10% MAU but generates ~50% of the overall revenue.
I wonder why US generates so much revenue compared to its small user base
US/Canada is ~10% MAU but generates ~50% of the overall revenue.
I wonder why US generates so much revenue compared to its small user base
https://en.wikipedia.org/wiki/List_of_largest_consumer_marke...
The businesses that wants to run ads also spend a lot. Its also true for Enterprise Software to some extent. I work for an enterprise software company and despite having had a decade of presence and having been founded in Europe, 70% of our revenue is from USA.
While I don't have numbers to back it up, personally from my experience, I see Americans spending a lot (sometimes more credit than savings itself) compared to other developed nations.
https://mises.org/wire/if-sweden-and-germany-became-us-state...
Now, if you want to talk about Quality of Life, instead of per capita income, I think there's probably a lot more going for the EU - much lower crime, better infrastructure, less absurd politics, more vacation. I'd definitely live in Nice over Minnesota, and I love Minnesota.
There is not less absurd politics in the EU. It's every bit as crazy over there right now. See: Italy, Hungary, the extreme right in the Netherlands, Greece, Poland, Denmark's recent policies on immigrant ghettos, and on and on.
The EU includes a lot of mid-tier countries. Poor people in the US get free healthcare and average welfare benefits that are far higher than the median incomes of all the mid-tier nations in the EU. The OECD better life index has persistently indicated that the US poor live better than the poor in any other nations except for half a dozen or so (such as Canada, Norway, Sweden, Finland). In the US it's primarily the 20% group above the poorest 20%, that do the worst compared to other developed nations - they often make too much money to qualify for free healthcare, their income potential is weak, their education opportunities are weak, they suffer much higher rates of bankruptcy, and they often don't qualify fully for traditional assistance programs (housing or food).
[1] https://www.vox.com/2015/8/27/9217163/america-guns-europe
[1a] http://news.gallup.com/poll/21346/crime-rate-lower-united-st...
Citation needed.
If you remove prescription drug ads from US TV, you'd get a similar picture.
I have not looked at it when I worked for Facebook, so this is pure speculation, but I would suspect that this is due to saturation and data quality:
- ads are auctioned off at the equivalent of a second price meaning, an ad buyer pays enough to compensate for the second best offer (compensating for expected conversion); if you look at the revenue as a function of ratio of ads to customers, that means that there is a discontinuity when (targeted) ads become more common than available slots: they bid against each other and not against poorly targeted ads, raising the second price;
- ad targeting: there are more specific targeting options in the US; I was very taken aback to see ethic background was one (at the request of minority advocacy groups, actually); I suspect that gender orientation is; a third party was also offering income-level (an option now discontinued after the CA scandal); there are more. Better targeting allows far more valuable ads, but higher value per clic but also a higher conversion, which means a higher auction level (bid * estimated conversion).