85% of Facebook users are outside North America, yet only 52% of ad dollars target regions outside North America
SAN FRANCISCO, CA February 20, 2014 — Marin Software (NYSE: MRIN), provider of a leading Revenue Acquisition Management platform for advertisers and agencies, today announced new research highlighting the opportunity for advertisers in reaching global audiences on Facebook. According to Facebook usage data and an analysis of advertising spend within Marin’s client base, while North America is home to just 15% of global Facebook users the region accounts for 48% of Facebook advertising spend.
Marin compiled the report from advertising spend data from across its client base of global brands collectively spending $6 billion a year on digital advertising, as well as publicly available reports. Some of the key findings include:
Most Marin Software advertisers focus their Facebook ad spend on reaching North American audiences, but opportunity lies for global brands in connecting with a vast and fast-growing international user base. Eighty-five percent of Facebook users reside outside North America; however, according to Marin’s clients advertising spend, only 52% of ad spend targets regions outside North America.
Despite the opportunity to reach international users on Facebook, Marin Software’s data indicates advertisers are underinvesting in Facebook outside of North America. For example, Asia Pacific has more Facebook users by volume than any other market but captures a mere 11% of Marin advertisers’ ad spend, five times less than North America. Spend is also relatively low in Latin America, Middle East and Africa, and Eastern Europe.
Marin Software found Latin America leads all other international markets in Facebook user ad engagement. Not only does the region have the world’s highest percentage of Facebook penetration, at 66% of internet users, according to data from Marin’s clients, it also generates the highest Facebook ad click-through-rates (CTR). The CTR in Latin America is 33% higher than North America and 54% higher than Western European markets.
“The increasing competition to reach Facebook’s North American users has driven CPMs for these ads dramatically higher – yet the cost of ads targeting the ‘other 85%’ of Facebook users remains quite low,” said Matt Ackley, Chief Marketing Officer at Marin Software. “Now is a golden opportunity for brands to launch impactful, cost-effective campaigns internationally – before competition and CPMs rise.”
This press release contains forward-looking statements including, among other things, statements regarding the prospect for growth in Facebook advertising internationally and the corresponding impact on CPMs specifically and the growth of digital advertising generally. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to adverse changes in general global economic or market conditions; delays, reductions or slower growth in the amount spent on online and mobile advertising, particularly on Facebook; and unforeseen developments in the digital advertising industry generally, technological changes; competition; and the fact that the social media advertising market is an emerging market and rapidly evolving. These forward looking statements are based on current expectations and are subject to uncertainties and changes in condition, significance, value and effect as well as other risks detailed in documents filed with the Securities and Exchange Commission, including our most recent reports on Form 10-Q and current reports on Form 8-K that we may file from time to time. Marin Software assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release.