Facebook’s Advertisers Skyrocket to 5 Million Per Month: A Rise of 2 Million Since March 2016

Facebook, the social media giant, is preparing to announce a colossal leap in its business advertisement sector. The platform, which has transformed the face of social networking, can now boast of an impressive 5 million businesses advertising on a monthly basis— a significant rise from the 3 million recorded in March 2016. It is an increase poignantly mentioned by Facebook’s Chief Operating Officer, Sheryl Sandberg, in her recent interview with Reuters. Sandberg underscored the importance of this exponential growth, emphasizing the massive potential Facebook possesses for future expansion.

The announcement is timely with another significant report stating that Facebook is increasingly becoming a force to reckon with, in terms of digital ad dominance, posing a credible threat to Google’s supremacy in this sector. As the US digital advertisement market is predicted to burgeon by 16 percent this year, Facebook could scoop up a hefty 32 percent share of this expanded market in 2017. The same report suggests that both Facebook and Google could potentially control around 46 percent of the global digital ads market by 2018. The impending acquisition of Yahoo by Verizon could further stir these dynamics, depending on how Verizon capitalizes on its fresh acquisition.

Advertisements account for a staggering 84 percent of Facebook’s revenue, much of which attributed to large businesses making significant expenditures. However, Facebook is signaling a strategic shift in its growth plan, with intentions to attract more spending from small businesses in the coming months. On this, Sandberg voiced the importance of small enterprises in job creation during these uncertain times. With a breakdown of the 5 million businesses, Reuters reports, the leading industries include e-commerce, entertainment/media, and retail. Interestingly, an overwhelming 75 percent of these businesses are located in emerging markets beyond United States, specifically in Brazil, India, Mexico, and Argentina.

At the heart of Facebook’s success is the mobile user, with over 90 percent of its 1.9 billion users operating through the mobile app. A significant 50 percent of these advertisers create ads on mobile, a fact that undoubtedly spurred Facebook to make significant enhancements to its app, with the latest addition being the ‘Stories’ feature. This not only makes for a more appealing user interface but also fosters a more streamlined ad creation process for businesses.