Last week, we announced the launch of Inside Network Research, our new subscription service dedicated to providing monthly research reports. What follows is data excerpted from Trends in Facebook Audience and Ad Market, the first report in our new service.
An area of particular focus in this report is nuances in the value of a demographic segment, particularly in emerging markets such India where Facebook’s audience is experiencing 84% growth year-over-year to make it the platform’s third-largest audience in 2012. Despite the U.S. audience being more than three times the size of India, India’s Facebook ad rates are 63% lower than the U.S.
The general Facebook advertising rule of thumb is that ad rates for females are higher than for males, especially in the western market. There is more demand for the female consumer, especially on the Facebook platform, which drives up rates. In most top markets, this holds true; female ad rates are 8% higher in the U.S. India, however, tells a different story: Its female audience makes up 27% of the country’s Facebook audience, yet female ad rates are only 1% higher than for males.
We also see differences in how India’s age demographics impact Facebook ad rates. In the U.S., ad rates for older age groups are higher due to the size of audience and demand of older age groups. In India, we do see an increase in ad rates for older age groups, but we find it to be inconsistent with the increase found in older age groups in the U.S. audience. This despite the fact that India skews younger, with 87% of the country’s audience under 34 years old.
The above chart compares ad rate differences in the 13- to 17-year-old age group in each market.
The still early adoption of Facebook in India is likely a top factor in demographic ad rate shifts. We also expect to see a ceiling to what advertisers are willing to pay in the market. Volume will be a key factor with 84% year-over-year growth; India is definitely a market to keep an eye on in the coming months and years as Facebook reconciles ad value and demand for the region.
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To read more of Trends in Facebook Audience & Ad Market, download an excerpt of the report here. If you’re interested in obtaining a full copy, a particular report in the Inside Network Research series, or subscribing to Inside Network Research, contact Kieran Barr, our VP of Sales and Social Media Research, at kieran.barr (at) insidenetwork.com.