Facebook, yesterday, announced that over three million businesses are now advertising on Facebook. That’s a 50% increase from 2015. To celebrate, it launched Your Business Story – a tool to let businesses create a video that shows their stories.
Much of the growth has been driven by mobile with over one million advertisers now creating ads directly from mobile devices. Indeed, mobile ad revenue is now responsible for 80% of Facebook ad revenue. Ad revenue rose 57% to $5.8bn in Q4 2015.
Businesses have been flocking to Facebook to establish a presence on Pages. According to research from Wells Fargo and Gallup, 46% of American businesses do not run a website, but instead 69% are using social media networks to advertise.
Dan Levy, VP small business, Facebook, explains:
“There’s no question businesses are coming to Facebook for our Pages product. So many of them don’t have a mobile presence or don’t have an online presence whatsoever. If you get a Facebook Page, you have a full mobile marketing solution.”
Over 50m small companies are now utilising Facebook Pages to advertise their products and services. They must purchase advertising on the social site if they want to be visible and this has helped Facebook generate such high mobile revenues. But Facebook also offers advanced targeting for marketers, which allows them to reach a more specific audience. It is that kind of specificity that has gained the site a glowing reputation when it comes to mobile advertising. Add to that the low starting budget of just $1 a day.
50m businesses now use Facebook Pages
In addition, the company continues to expand rapidly outside of top markets US, UK, Brazil, Italy and Australia. Southeast Asia has been picking up speed. Dan Levy recently told Fortune, that 1.5m small businesses are now uploading videos onto the platform every month. These videos aren’t all ads, but could be used as such.
Subsidiary Instagram also announced plans to tap Facebook’s ad infrastructure to reach small business owners.
“[Marketers are] staying on Facebook because their ads work. They have the ability to measure results […] every dollar, or euro or yen, that they spend.”