Analysis of Facebook’s reporting of the source of its ad revenue suggests that brands in Asia – mostly likely China – are investing in the platform to reach users outside of the region. This phenomenon was dubbed the ‘Chinese Export Market’ on a Twitter earnings call early last year.
In 2018, Facebook reported $9.6bn in ad income from users in Asia, but $11.7bn in Asian billings. This $2.1bn discrepancy, up from $1.2bn in 2017, highlights an outflow of brand investment from the region. The most likely destination is users in North America, where brand spend was reported $1.3bn lower than...