As Chinese brands seek for global reach, Meta experiences an increase in China-related revenue

Meta Platforms has reported a steady growth in China-related revenue, driven by robust engagement from mainland-based advertisers seeking to capture consumer’s attention in foreign markets.

Meta Platforms, the U.S.-based social network giant, has reported a steady growth in China-related revenue, driven by robust engagement from mainland-based advertisers seeking to capture consumer’s attention in foreign markets. According to financial results of Meta released on Friday, China’s contribution to Meta’s total revenue reached 10%, amounting to at least US$13.49 billion, a noteworthy increase from 6% in the preceding two years.

The increase in China’s impact on Meta’s revenue showcases the growing interest of Chinese brands in expanding their reach beyond just domestic borders. Meta’s diversified platforms, including online commerce and gaming, have become attractive avenues for mainland advertisers to connect with global audiences.

During an earnings call with analysts, Susan Li, Chief Financial Officer of Meta, highlighted the significant role played by the online commerce and gaming verticals in driving this growth. She underscored the strong demand from Chinese advertisers eager to reach audiences in other markets, contributing to the company’s overall revenue expansion.

The data reveals that China’s sales contributed an impressive 5 percentage points to Meta’s total revenue growth in the year 2023. This emphasizes the strategic importance of the Chinese market for Meta Platforms and signals a broader trend of Chinese brands leveraging global platforms to increase their international presence.

The shift in China’s contribution to Meta’s revenue comes at a time when global digital platforms are witnessing increased interest from Chinese businesses looking to tap into the vast consumer bases outside China. The appeal of Meta’s diverse user base and the platform’s global influence make it an attractive channel for Chinese advertisers seeking to engage with audiences across the globe. The nation also accounted for a greater proportion of the revenue of Meta in the Asia-Pacific the previous year, at 38%, up from 27% in the year 2022. The biggest advertising market of Meta in Asia was China in the year 2017. However, Facebook has been blocked by the government of China since 2009 under the increased internet censorship regime of Beijing.

As Meta Platforms continues to navigate the dynamics of the evolving digital landscape, the increasing significance of China-related revenue highlights the interconnectivity of the tech industry at a global level.