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Chapter 1: Problem 15

The social networking site Facebook has grown rapidly in the last 10 years. The following table shows the average number of daily users (in millions) as it has grown from 2010 to 2017 in different regions in the world. \(^{3}\) $$\begin{array}{lrc}\hline \text { Region } & 2010 & 2017 \\\\\hline \text { United States/Canada } & 99 & 183 \\\\\text { Europe } & 107 & 271 \\\\\text { Asia } & 64 & 453 \\\\\text { Rest of the world } & 58 & 419 \\ \hline \text { Total } & 328 & 1,326 \\\\\hline\end{array}$$ How would you describe the changes in the distribution of average daily users during this 7 -year period?

Short Answer

Expert verified
Short Answer: Between 2010 and 2017, the distribution of average daily users on Facebook shifted significantly, with Asia and the Rest of the world experiencing substantial growth, while the United States/Canada and Europe saw declines. Asia became the largest region for Facebook's daily users by 2017, followed by the Rest of the world, indicating a more global user base and reduced dominance by the United States/Canada and Europe.

Step by step solution

01

Calculate percentage distribution of users in 2010 and 2017

To determine the percentage distribution, we will divide each region's daily users by the total daily users for that year, then multiply by 100. For 2010, the percentage distribution is: - United States/Canada: \((\frac{99}{328}) * 100 = 30.18 \%\) - Europe: \((\frac{107}{328}) * 100 = 32.62 \%\) - Asia: \((\frac{64}{328}) * 100 = 19.51 \%\) - Rest of the world: \((\frac{58}{328}) * 100 = 17.68 \%\) For 2017, the percentage distribution is: - United States/Canada: \((\frac{183}{1326}) * 100 = 13.79 \%\) - Europe: \((\frac{271}{1326}) * 100 = 20.44 \%\) - Asia: \((\frac{453}{1326}) * 100 = 34.16 \%\) - Rest of the world: \((\frac{419}{1326}) * 100 = 31.60 \%\)
02

Compare the percentage distributions and describe the changes

Comparing the percentage distributions for the regions between 2010 and 2017, we can observe the following changes: - The percentage of users in the United States/Canada decreased from 30.18% in 2010 to 13.79% in 2017. - The percentage of users in Europe slightly decreased from 32.62% in 2010 to 20.44% in 2017. - The percentage of users in Asia increased dramatically from 19.51% in 2010 to 34.16% in 2017. - The percentage of users in the Rest of the world increased substantially from 17.68% in 2010 to 31.60% in 2017. From these observations, we can describe the changes in the distribution of average daily users during the 7-year period as follows: The distribution of average daily users on Facebook has shifted significantly from 2010 to 2017. The regions of Asia and the Rest of the world have experienced substantial growth in their shares of daily users, while both United States/Canada and Europe have seen declines. Asia has become the region with the largest share of Facebook's daily users by 2017, and the Rest of the world follows closely behind. This suggests a trend of Facebook usage becoming more global, with a broader user base across different regions as compared to the earlier dominance of United States/Canada and Europe.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Percentage Distribution
Understanding how the user base is spread across different regions can give deep insights into the focus areas for a business. Percentage distribution is a simple yet powerful tool that allows us to see how data is apportioned across various categories relative to a whole. In this context, it shows how Facebook's daily active users were distributed across global regions in 2010 and 2017.

In 2010, the distribution of Facebook users leans heavily towards the United States/Canada and Europe, with both holding more than half of the total users combined. However, by 2017, there was a marked shift.

The data reveals that the percentage share of users in Asia surged, making it the largest segment. The Rest of the world also showed a significant rise in percentage share, illustrating the global expansion of Facebook's user base. Therefore, percentage distribution is not merely a numerical computation; it's a snapshot of user engagement across geographical segments, vital for strategic planning.
Regional Growth
Regional growth in the context of user data exhibits how various geographic areas contribute to the overall increase in users of a platform. It's pivotal for businesses to recognize these growth trends to strategize effectively and allocate resources wisely. From 2010 to 2017, Facebook experienced significant regional growth that altered its user demographics.

During this period, Asia witnessed the most dramatic increase in users, growing from just 64 million users in 2010 to 453 million in 2017. This indicates a robust growth rate. Likewise, the region identified as the Rest of the world also observed substantial growth, reaching 419 million users by 2017.

These growth patterns suggest that emerging markets are becoming increasingly crucial for Facebook, pushing beyond the saturated markets of the United States/Canada and Europe. Recognizing regional growth helps companies identify where the potential for future expansion lies, providing a roadmap for broadening presence.
User Demographic Trends
User demographic trends are essential for understanding changes in the audience base over time. They can signal shifts in cultural, economic, or technological landscapes. For Facebook, from 2010 to 2017, the shifting demographic trends highlight a pivot from traditional markets to a wider, more global audience.

Initially dominated by users from United States/Canada and Europe, whose growth has slowed, the landscape shifted to include more users from Asia and the Rest of the world. This shift points to a democratization of social networking, with new regions embracing connectivity.

Analyzing user demographic trends enables businesses to navigate changes in customer behavior. It helps tailor marketing strategies, product offerings, and engagement tactics to suit the evolving needs of a diverse user base. For technology companies like Facebook, understanding these trends is crucial for sustaining long-term growth and relevance in the dynamic world of social media.

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