The Global Economic Impact of Facebook: Unlocking Opportunities

The Global Economic Impact of Facebook: Unlocking Opportunities

Facebook has commissioned Deloitte to estimate the economic impact it enabled in 2014 around the world and it looks like the social media giant has made quite the splash.

B&T Magazine
Posted by B&T Magazine

Deloitte analysed the contribution Facebook supports as a catalyst for economic activity in ecosystems composed of marketers, app developers, and providers of connectivity. It’s estimated the platform has enabled global economic impact of $227 billion and 4.5 million jobs around the world in 2014.

The report analyses how the company’s marketing, platform, and connectivity effects have facilitated growth as well as stimulate economic impact. It does this by providing 1) tools for marketers; 2) a platform for app developers; and 3) demand for connectivity, meaning data usage and mobile devices. The study is an update to Deloitte’s 2011 European report on the subject and now includes an analysis of other regions and countries.

Jolyon Barker, Deloitte’s global managing director, technology, media & telecommunications says of the report, “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.”

“Across the world there is a greater urgency about creating jobs,” says Facebook’s Chief Operating Officer, Sheryl Sandberg. “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.”

Key findings in the report include:

  • The United States is estimated to capture the largest share of economic impact enabled, $100bn;
  • High rates of engagement enabled $21bn of economic impact in Central and South America;
  • The thriving app economy in EMEA has helped to generate $13bn of economic impact for the region through the platform effects; and
  • In APAC internet uptake and purchases of devices motivated by Facebook have contributed to $13bn of economic impact.

You can download the full report here.