Facebook Has Increased Active Advertisers

Facebook Reaches One Million Active Advertisers: Facebook has stated that it has a million global active advertisers who used the platform in the last 28 days.
Facebook Has Increased Active AdvertisersA milestone for a company seeking to revive its revenue growth.

A vast majority of those advertisers are small business owners who have come to the number one social network in the world.

Facebook executives hope to attract even smaller advertisers as 16 million local businesses, ranging from jewelry vendors to clothing stores have free pages in the internet’s leading social network.

Although it is difficult to determine how much money invest small advertisers in the online segment, total spent approximately 32,000 million (24,000 million euros) in 2012 in the United States, according to research firm eMarketer.

“Most small business owners start out as users of Facebook, then migrate to become owners and then migrate pages to become advertisers, “said Dan Levy, director of small business Facebook.

Levy said that Facebook does not plan to start charging for the creation of business pages .

The ads make up 85 percent of the revenue of Facebook, a percentage dollars which also includes brands and advertising agencies in the world. But the company is trying to stimulate growth in advertising after a sharp drop last year.

Last quarter, Facebook reported revenues of 1,460 million dollars (1,089 million euros).

Advertising revenue jumped 43 percent, the fastest pace of growth since late 2011.

Facebook declined to reveal how much of the advertising revenue comes from small businesses and did not indicate how long it took to reach the milestone of one million advertisers.

The company has introduced several initiatives to stimulate growth, including a renewal of its news channel and changes to simplify the process by which advertisers buy ads on the network.

“The small business owners are critical to the success of Facebook” said Brian Wieser, an analyst at Pivotal Research Group.

“Once launched new advertising products targeted to small businesses in the middle of last year, could significantly accelerate the growth of income” he said.

More than 50 percent of small business owners use Facebook pages to promote their products but only 16 percent use the social network advertising, according to BIA Kelsey a consultancy specializing in local commercials.



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