Average revenue per user is about 3-4 times higher in the US than in Europe (slide 4). Any ideas why? Do we just have a proclivity to spend more or are we more influenced by advertising?
Americans are somewhat wealthier than the average European but not by that margin. My guess is several things. European data protection is stricter so monetizing users is probably harder, but more importantly I'd say there is no unified market for advertisers. Europe has dozens of languages and different cultures that are much harder to serve with ads than you can in the United States.
Young American are wealthier than European. In Europe wealth are with old people
Also, Americans are wealthier on average. But I do wonder if Europe’s data regulations make it harder for Facebook to target ads as effectively in the EU...
I believe a greater percent of retail is online in the US than Europe. Generally it is easier for an e-commerce company to get their money back on an ad than a brick and morter store trying to advertise onlin.e
We manage a lot of social ads for brand in Germany, which is obviously the biggest EU market. It‘s mostly very slow adoption rate of new channels, so it‘s mostly lag. Additionally FB Sales internationally has been mostly horrible, so I think they just did a horrible job in their ad sales in Europe. OF course some parts of it like the split between digital and other channels is not only FB responsibility, but still... I think they are just horrible in this. I just had a client who invests Millions with Google every year and nothing with FB, there might be a good argument for let‘s say 60% Google or 90% Google but there is nor argument for 100%. So lag, less availability marketing budget on total and a stupid sales process.
I think Americans in general buy a lot more stuff than Europeans. I think they are more susceptible to ads.