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Despite Being Banned, Meta Is Getting Huge Growth From China
Meta’s operations are banned in China. However, this does not stop its growth due to its advertisers there. Susan Li, the Finance chief of Meta, informed analysts on Wednesday that many Chinese companies played a big role in its growth this quarter. Online commerce and gaming benefitted due to high spending from advertisers in the second-largest economy.
According to CNBC,
“In its third-quarter earnings report on Wednesday, Meta said sales rose 23% from a year earlier, illustrating the company’s ability to weather a tough digital ad market better than smaller rivals like Snap and X, formerly known as Twitter.”
Li added that in the last quarter, Chinese companies played a major role in Meta’s growth in the country. This has been a theme in recent periods. Online commerce and gaming in the Meta platform benefitted from the spending among Chinese advertisers, as they reached customers in other markets.
Such developments mean that many Chinese companies are spending large sums of money on Meta’s social media platforms like Facebook and Instagram. They are using these platforms to send targeted advertising to Meta’s billions of users around the world.
Susan Li also added that the areas that showed the strongest growth include – the Rest of the world, including South America (36%), Europe (35%), Asia-Pacific (19%), and North America (17%). Li stated that China was a big reason for Meta’s expansion in a short period of time.
Brazil was also a strong contributor to Meta’s growth in the region, as increased advertisers in China are targeting Brazilian users.
Due to China’s Great Firewall, platforms like Facebook, Google, and Twitter are all blocked in the country. Meta’s apps like Facebook, and its siblings are not available in China since 2009.
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