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article imageFacebook marks a million small business advertisers

By Eko Armunanto     Jun 23, 2013 in Business
Facebook recently claimed to have a million active advertisers of small and local businesses; not big brands who have been using the Facebook platform to advertise for years. It says active advertiser is anyone who has advertised in the past 28 days.
“I know business owners like these invest their hard earned money and time into running their companies. So today, on behalf of everyone at Facebook, I want to say thank you to them and to the over one million businesses like them who are active advertisers. You have chosen Facebook as a partner to grow your business. We appreciate the chance to work with you, and we celebrate your success,” says Facebook’s Global Marketing Solutions Director Dan Levy in its official newsroom.
Forbes says all this suggests that small and medium-sized businesses could account for the bulk of revenue growth this year, citing Pivotal Research Group analyst Brian Wieser. “While some observers might read this data as implying weakness in growth from other segments of advertisers, we view this very positively, as it speaks to the predictability and durability of the company’s revenue growth,” he wrote. As said by Carolyn Everson, Facebook Vice President of Global Marketing Solutions, businesses big and small are growing on Facebook and “This is a very exciting milestone”. Marketers can build personal relationships with their customers on the platform, at a scale which has never before been available. Facebook claims to have more than 2 billion connections between members and local businesses, with 70% of users in North America connected to a local business. On average, local business Facebook Pages produce 645 million views and 13 million comments
Advertising accounts for 85 per cent of Facebook’s total revenue, according to Marketing Weeks. Advertising revenue grew 43 per cent year on year to $1.25 billion (£803 million) in the three months to 31 March. Research firm eMarketer forecasts Facebook’s earnings from display advertising will hit £279 million this year, representing 18.6 per cent of the total market. Almost two thirds (61 per cent) of monthly active UK users on Facebook are connected to a local business page, the site says. More than 3 million comments are left on local business pages in the region each week.
However, “It’s not entirely clear whether Facebook eventually will catch up to Google. Mark Zuckerberg‘s company generally has been more focused on reaching big brand advertisers. That’s partly because its site is a little more like Television 2.0 than Search 2.0, because people hang out there to communicate with friends more than to find stuff to buy,” Forbes’ Robert Hof wrote. Google, on the other hand, is forecast to hit display revenues of £371 million in the UK alone this year, a 24.9 per cent share of the display market.
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