Facebook earns 10% of its revenue from China. That's about $5 billion.
And yet China blocks Facebook from its citizens.
The reason Facebook receives that much income from China has nothing to do with its Facebook users. It has everything to do with Chinese businesses using Facebook to sell their products. Chinese businesses spend more on Facebook advertising than every other country in the world, with the exception of American businesses.
According to Pivotal research analyst Brian Wieser, China will increase ad spend on Facebook for the foreseeable future. This could mean that U.S.-based marketers will face increasing competition for both ad space and services or products.
Use FB to reach new markets
"Everyone has been looking at the China opportunity the wrong way," Wieser tells Ad Age. "I think most observers have looked at the opportunity from China in context of a media owner offering services to consumers in the country and then selling ads to advertisers within China to target local users."
"We are seeing a lot of Chinese brands trying to enter markets outside of [China], for example, phones, as well as gaming apps, and especially e-commerce."