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Facebook Struggling To Drive Ad Revenues In India; Estimated $15mn Quarterly Earning

Facebook is struggling to lure Indian brands to spend their advertising dollars on its platform despite its massive base of 132 million users from the country.

India is Facebook’s second largest market after the US (193 million) in terms of users, however, so far the payoff has been rather small.

According to analysts, Facebook earns 15 cents per user in India every quarter, far behind the $7 to $8 the company makes on each US user in the same period.

Facebook is estimated to earn just $15 million per quarter from its India business while Google has been raking in approximately $350 million per quarter.

In an attempt to fix this, Facebook is now offering advertisers free email support for questions about advertising and advice on increasing sales.

Facebook’s target for the campaign is small and mid-size businesses and has even rolled out India specific features for its ad business such as “Click to Miss Call”.

Users click the button on an ad, which automatically calls an advertiser. Users then hang up and the call will be returned by the advertiser with a pre-recorded message.

TV advertising still seems to be the most impactful way for brands to reach customers, however, Facebook is trying to change that by educating advertisers to create more interactive pages and communicate better via its Messenger platform.

Moreover, Facebook is using India as a testbed for other emerging markets, with the company claiming it will implement features built for India in other markets such as Brazil, etc.

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