Facebook Is Expanding With First Office in Johannesburg
The world’s largest social network, U.S.-based Facebook is expanding with plans in July to open an office in Johannesburg — its first in Africa — to boost eroding international advertising revenue.
Nunu Ntshingila, 51, will be overseeing Facebook’s business in the region. She recently resigned as chairman of WPP’s Ogilvy & Mather agency in South Africa, according to MarkLives.
Advertising generates more than 90 percent of Facebook revenue, AdvertisingAge reports.
International revenue has always been important to Facebook. More than half the company’s advertising revenue comes from outside the U.S. and Canada, but that percentage has been dwindling, Redcode reports. Facebook’s ad revenue represented 52 percent of earnings in the first quarter of 2015, down from 56 percent in the first quarter of 2013.
Relying more and more on expensive ads in North America versus other parts of the world, Facebook could use a new office in Africa to help expand on its international business, according to Redcode.