Facebook Targeting Chinese Ad Revenue (Even Though The Service Is Blocked In China)
Can't import your social network into a location? What about exporting the international ad revenue out?
It’s true that the 1.35 billion folks living in China can’t access Facebook, but there are 1.39 billion average monthly users that can. According to the Wall Street Journal Facebook has added a second partner to help appeal to Chinese companies that can target users outside of China. The effort of obtaining international Chinese ad spend may help further boost Facebook’s ad numbers.
The WSJ reports that Chinese clients like interactive game designer Youzu Interactive Co have more than doubled the number of daily users after spending the majority of their ad spend on Facebook. Youzu Interactive now acquires one-half of their players via Facebook.
The overall process works by having Facebook Ad re-sellers like PZoom or MeetSocial help Chinese companies see the value and bring them aboard. The re-sellers then receive a percentage fee (from 10% to 15%) of the overall ad spend.
While China has its own flourishing social networks, only LinkedIn has had any traction within China’s borders to date, but we may see more networks trying to export ad revenue out rather than penetrate the networks in.
For more information, see the Wall Street Journal.