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Small businesses key to Facebook’s growth

As more and more businesses regard the social media platform as their primary marketing platform, Facebook is only set to grow

Facebook’s second quarter earnings, released recently, have shattered expectations as more and more small businesses turn to the social media platform as their primary marketing channel.

Highlighting the important role that small businesses play in the future of Facebook, the findings show that there are now more than 60 million small businesses active each month, 10 million of which joined in the last quarter.

Out of the 60 million, only 3 million are advertisers, leaving a huge opportunity for Facebook to convert the remaining 57 million by converting free posts into paid adverts.

Dan Levy, Facebook’s vice president told CNBC:

“Business owners start with the organic products, and then they move when they see value, to invest in the paid products”

“One of the things that’s interesting is more than 80 percent of our new advertisers start off with just simple page posts that they end up boosting with a little bit of money. They learn how to do it in the same way they would create content as a user. They see value and then they’re willing to invest the money from there.”

Attributing the rising number of businesses on Facebook to the new tools, specific types of pages and messaging for businesses, Levy said:

“We’ve created ways for consumers to message a business, which were seeing an increasing trend of. We know that not all businesses are the same, and with more than 60 million businesses, there’s a diverse set of needs, so were really trying to create a product that’s both valuable to all businesses but specific to each one.”

There are many factors driving this growth, including the explosion of video content from advertisers and mobile ads.

With 100 million hours of video watched every day on Facebook and small businesses are really taking advantage of this.

Today, with the evolution of technology and smartphones, business owners can create video content at ease and upload it to Facebook in a matter of minutes – and 2.5 million businesses posted a video in the last month.

“If you think about how hard it was to create a video ad – even five years ago it meant getting TV cameras and a production crew,” said Levy. 

Melanie Luff

About the author

Mel wrote for all titles in the Dynamis stable including, and as well as other global industry publications.


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