The Future of Facebook Ad Revenue is Small Business

  • Zuckerberg-black-background

Zuckerberg-black-backgroundDuring it’s most recent earnings call, Facebook announced all of it’s most recent numbers. And they were looking good.

Revenue for the social network was up across the board, and profits were higher than any other quarter in the companies history, with more active monthly users. In addition to that, Facebook’s stock is trading higher than it ever has.

There are many reasons to be optimistic about Facebook’s ad revenue, and the potential that this revenue will be beneficial for the company, but also that it’s advertising model will be beneficial to those that are using it – namely small businesses.

Facebook has 25 million small businesses with active company pages on Facebook, and it is estimated that around 4% of those small businesses are actively advertising on Facebook. This number is expected to grow in the next year, as it is already up 25% from last year. The potential to get more of these 25 million small businesses using Facebook advertising is seen as a potential goldmine for Facebook.

It seems most likely that many of the small businesses not advertising on Facebook is due to limited resources. With a small business that only has one or two employees, finding the time to advertise on Facebook may be impossible. However as businesses grow, they will need to take a piece of Facebook advertising to compete in their market no matter the size.

Facebook has also said that it intends to make it’s advertising interface much simpler. Recognizing that those creating the ads may not have time to go in depth in the detailed analytics, and just wanting to attach a budget to an ad, and have Facebook put it in front of the right people.