The report (commissioned by Facebook) sets out to estimate the value Facebook adds to the global economy through the marketing, platform and connectivity opportunities it creates.
How Facebook impacts the global economy:
- Increases demand for new devices and internet services
- Allows businesses of all sizes to reach new audiences
- Supports and encourages ‘the app economy’
In 2014 over 1.35 billion people logged into Facebook at least once a month (up 14% year on year). 83% are using mobile devices to log in. In the US time spent on Facebook accounts for nearly a fifth of all time spent on mobile devices.
Marketing impact of Facebook
- By the middle of 2014, over 30 million small and medium sized enterprises had established a Facebook page
- Active advertisers on Facebook increased by 50% between June 2013 and June 2014
- The report estimates that Facebook’s marketing effect in 2014 was worth $148 billion and 2.3 million jobs
- Economic impact was highest in the US, with Brazil ranking second
Platform impact of Facebook
The report estimates the economic value of the development of third party products and services built on top of the Facebook platform.
- Estimated global impact of $29 billion and 660,000 jobs
- The app economy is driving much of this impact
- EMEA is the largest beneficiary of the ‘platform effect’
- Clusters of new businesses developing apps for Facebook have grown in cities such as Minsk and Berlin
Connectivity impact of Facebook
How does Facebook drive the demand for data usage, internet connections and new devices?
- Estimated global impact of $50 billion and 1.6 million jobs
- Highest impact reported in US and EMEA – driven by popularity for high end devices
In summary
- In 2014 Facebook created $227 billion economic impact and 4.5 million jobs
The full report can be downloaded here.