Facebook 2013 Annual Report Download - page 43

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41
Trends in Our Monetization by User Geography
We calculate our revenue by user geography based on our estimate of the geography in which ad impressions are delivered or
virtual and digital goods are purchased. We define ARPU as our total revenue in a given geography during a given quarter, divided by
the average of the number of MAUs in the geography at the beginning and end of the quarter. Annual ARPU is the sum of respective
quarterly ARPU amounts in that year. The geography of our users affects our revenue and financial results because we currently monetize
users in different geographies at different average rates. Our revenue and ARPU in regions such as United States & Canada and Europe
are relatively higher due to the size and maturity of those advertising markets as well as our greater sales presence and the number of
payment methods that we make available to marketers and users. For example, ARPU for an average user in 2013 in United States &
Canada is more than five times higher than for an average user in Asia.
Note: Our revenue by user geography in the charts above is geographically apportioned based on our estimation of the geographic location of our users when they
perform a revenue-generating activity. This allocation differs from our revenue by geography disclosure in our consolidated financial statements where revenue is
geographically apportioned based on the location of the marketer or developer.