By 
By Ross Moyo
Zimbabwe, like many other African countries, is experiencing a significant gap in social media monetization compared to developed countries. Many people have questioned why African countries have very low earnings from Facebook, even when they have good traction on their social media pages, hitting millions of views and serious traction, yet they have nothing to show for their popularity. For Zimbabwe, it’s even worse because automatic monetisation isn’t activated, and Zimbabwe is not listed among the countries eligible for monetisation, forcing many to change their Facebook country of registration.
However many people have been flying many conspiracies, with many believing that its either sanctions or just looking down upon Africa, yet in actual essence, this has nothing to do with that at all, in fact its all the simple science of the basic law of demand and supply, Facebook, Tik tok, Youtube, X all pay their subscribers not because of the millions of the views, but simply because of the number of advertisers that are already advertising on their platform, and they share the revenue.
This demand and supply matrix determines how much is going to be paid for the actual content creators because they have the revenue from the actual advertisers in that area, or targeting that area from wherever they are, the more the ads revenue they have and the higher the total cost they receive as the advertisers compete for the limited space and this fa tore introduces a common term called Cost Per Mille (CPM).
Earnings are determined by the Cost Per Mille (CPM), which is how much advertisers pay per 1,000 views. Advertisers in countries with stronger economies and higher purchasing power, and huge budgets pay higher prices and countries like the U.S., UK, Newzealand Australia, this in turn creates a higher payout to the owners of the platforms if an advert is run on their platform, and the higher the mount of ads paid over the number of viewers, the better the payout.
Here are the Advertiser CPM for and for content creators its even much less profitable.
* Zimbabwe: $0.60
* Zambia: $1.20
* South Africa: $12.50
* Iceland: $17.00
* United Kingdom: $10.31
Facebook advertising doesn’t realize revenue on the platform charges solely based on impressions, other key metrics such as CTR (Click-Through Rate), CR (Conversion Rate), and CPC (Cost Per Click) depend directly on the quality of your ad creatives, how many times an advert is actually watched, clicked through or even better off actioned on the call. However, one constant factor remains CPM (Cost Per 1,000 Impressions), which you pay directly to Facebook.
Despite having a growing number of social media users, the country’s online advertising revenue remains low. According to industry reports, Facebook’s Cost Per Mille (CPM) rates for Zimbabwe are significantly lower than those in the United States, Canada, and the UK.
One of the primary reasons for this gap is the lower ad demand in Zimbabwe and Africa. Fewer businesses in the region advertise on social media platforms, resulting in lower revenue for publishers and content creators. This is largely due to limited marketing budgets and a lack of awareness about the benefits of online advertising.
Another factor contributing to the low CPM rates is the high user growth rate in Africa. As more users join social media platforms, the ad inventory increases, leading to lower CPM rates. While this growth presents opportunities for publishers, it also means that advertisers have more options, driving down ad prices.
Zimbabwe’s economic challenges also play a significant role in the low social media monetization. With lower disposable incomes, users have limited purchasing power, making it less attractive for advertisers to invest in online ads. Additionally, the country’s low credit card penetration rate makes it difficult for users to make online payments, further limiting e-commerce opportunities.
The mobile-only user base in Zimbabwe and Africa also contributes to the low CPM rates. Mobile ads generally cost less than desktop ads, resulting in lower revenue for publishers. Furthermore, the limited e-commerce infrastructure in the region, including online stores and payment gateways, hinders the growth of online advertising.
The slower adoption of social media advertising by businesses in Zimbabwe and Africa is another factor. Many companies in the region are yet to recognize the benefits of online advertising, leading to lower demand and lower CPM rates.
Currency exchange rates also play a role in the low social media monetization in Zimbabwe and Africa. The country’s currency fluctuations and lower exchange rates make it less attractive for international advertisers, resulting in lower revenue for publishers.
To address these challenges, Zimbabwe and Africa need to invest in digital infrastructure, promote e-commerce, and increase awareness about the benefits of online advertising. Governments and businesses must work together to create a conducive environment for digital growth and monetization.
The African Continental Free Trade Area (AfCFTA) presents opportunities for businesses to expand their reach and increase online advertising revenue. By leveraging social media platforms and investing in digital marketing, African businesses can tap into the growing online market and drive economic growth.
In essence, Zimbabwe and Africa’s social media monetization gap is a complex issue with multiple factors at play. Addressing these challenges will require a concerted effort from governments, businesses, and individuals to promote digital growth and create a thriving online ecosystem.
Specific initiatives can be taken by the Zimbabwean government to promote digital growth and increase online advertising revenue.Meanwhile African businesses can leverage social media platforms to drive e-commerce and increase revenue whilst the role of international organizations cannot be overemphasized in supporting digital growth in Africa as a whole.
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