The most recent report released by Deloitte examines the global economic impact of Facebook. Since its launch in 2004, Facebook enabled millions of people across the world to unlock new opportunities through connecting people and businesses, embracing innovation and discover marketing opportunities. Deloitte estimated that in 2014, Facebook enabled $227 billion of economic impact and 4.5 million jobs globally, serving as a marketing tool for large and small-to-medium sized companies, a platform for app development, and a tool to connect with others.
Facebook: Platform for Marketing
The company estimated that Facebook‘s marketing effects worth around $148billion and enabled 2.3million jobs globally. Facebook offers a variety of marketing options from Facebook Business pages to Facebook ads to reach out to an audience and promote products/services. In addition, non-for-profit organizations, governmental institutions are also using Facebook to connect with audiences. “The creation of Pages represents a low-barrier marketing option for most businesses.”
The platform has also become one of the top website referring sources that is driving traffic to the website. “Website owners can increase their revenues as a result of additional organic website traffic referred from Facebook”.
App Developers: Jobs That Didn’t Exist 10 Years Ago
Facebook enabled 3rd party app developers to create new features, services, contest applications, games, photo sharing applications, and more. The applications that are run on Facebook allow web developers to customize user experience and increase sales, especially for gaming apps which can be monetized through ads. Facebook also allows website owners to use social plugins to enable social sharing and commenting using a Facebook account. “Social plugins can increase traffic, time spent on site, or sales conversions that grow website publishers’ revenues”.
The platform effects also include the economic impact of events and social campaigns. “The new value is based on Facebook’s ability to build attendance by leveraging s broad network of contacts, by facilitating the invitation of friends, and by increasing the visibility and discoverability of people going to events”. The consulting company estimated that Facebook enabled $29billion of economic impact and 660,000 jobs globally in 2014 including $0.6 billion of economic impact and 16,000 jobs were created in Canada.
Boosting Demand for Mobile Devices and Data Usage
Finally, it is estimated that Facebook’s connectivity effects enabled $50billion of economic impact and 1.6million jobs globally. Motivated by Facebook and its new features, users were more likely to purchase more advanced mobile devices and use more data to stay connected on Facebook: share videos, view photos, news and post links to stream music, and more. “Facebook users consume broadband across the range of activities they perform on the platform, from accessing their Newsfeed, to checking friends’ updates, to uploading photos or videos, sending messaging or using apps, to name a few”.
The report pointed to a number of reasons why Facebook is so relevant to online users and businesses.