Facebook ‘boosted global economy by $227bn last year’- report

20/01/2015

Facebook has enabled global economic impact of USD 227 billion and 4.5 million jobs around the world in 2014, according to a report.

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Source: Deloitte

The study, from Deloitte and commissioned by Facebook itself, said the gains were made through wider effects of the social network, such as providing tools for marketers and boosting connectivity, despite the social network generating just $12bn in revenue.

The report, called Facebook's Global Economic Impact, analyses how Facebook's marketing, platform and connectivity effects have facilitated growth and jobs around the world.

"Across the world there is a greater urgency about creating jobs. The good news is that the tech industry is powering the economy and creating jobs within and beyond its own campuses. Every day, businesses of all sizes, sectors, and skill sets are using the Facebook platform to grow and expand," Facebook Chief Operating Officer Sheryl Sandberg said.

The report also examined how Facebook stimulates economic impact by providing tools for marketers, a platform for app developers and demand for connectivity.

"Our study finds that Facebook enables significant global economic activity by helping to unlock new opportunities through connecting people and businesses, lowering barriers to marketing and stimulating innovation," Deloitte Global Managing Director (Technology, Media and Telecommunications) Jolyon Barker said.

Regional breakdown

The US benefitted the most from Facebook, with $100bn of economic activity enabled. Meanwhile, equivalent figures for EMEA, Central and South America and APAC coming in at $13bn, $21bn and $13bn.

The reportmade an assessment of the marketing impact of Facebook Pages and targeted advertising by looking at business usage of the network. This found that the UK was the third biggest beneficiary of marketing globally with an economic impact of $6.6bn and 89,000 jobs hinging on the sector.

This compared to equivalent figures of $77.6bn and 816,000 jobs for the US and $8.4bn and 189,000 jobs for Brazil – ranked first and second respectively.

However, in coming to its findings the report excludes the direct operations of the social network. It also neglects to mention that Facebook itself has benefitted from the rise of internet services, such as faster internet, the rise of smartphones and smarter technology.

The full report can be downloaded here.


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