Deloitte’s report analyses how Facebook stimulates economic activity by providing tools for marketers, a platform for app developers, and demand for connectivity.
Facebook connects more than 1.35bn people and creates significant economic impact. Through its wide reach and high user engagement, Facebook provides businesses of all sizes and technical sophistication with a significant opportunity to speak directly with their customers.
The study analyses Facebook’s broad economic impact through:
• Marketing effects: the economic impact of Facebook for businesses that use it as marketing platform to connect with consumers and build brand value;
• Platform effects: the impact in the developer app economy;
• Connectivity effects: the impact created through the sale of mobile devices and internet connectivity.
1. Marketing Effects
Facebook Pages and targeted advertising help businesses grow sales locally, nationally and globally; reduce barriers to marketing; and support entrepreneurship.
It is estimated that the marketing effect of Facebook in 2014 enabled $148bn of economic impact and 2.3m jobs globally.
2. Platform Effects
Facebook development tools encourage the creation of new features, services, and apps, which facilitate content distribution and stimulate innovation and new jobs.
It is estimated that the platform effect of Facebook in 2014 enabled $29bn of economic impact and 660,000 jobs globally.
3. Connectivity Effects
Facebook‐motivated purchases of devices and internet connections drive demand for data usage. Improvements in connectivity spill over to the rest of the economy and stimulate economic growth.
It is estimated that the connectivity effects of Facebook in 2014 enabled $50bn of economic impact and 1.6m jobs globally in 2014.