Facebook Inc (FB) Has Two Million Active Advertisers

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Facebook Inc (NASDAQ:FB) revealed this week that the number of its active advertisers has risen to two million. That represents a 33% increase over the number of active advertisers the company reported in July 2014. Most Facebook advertisers are small and medium-sized businesses.

Facebook Inc (NASDAQ:FB) defines active advertisers as those who have bought advertisements on the platform in the last 30 days. According to Facebook’s COO, Sheryl Sandberg, about 30 million small businesses now have Facebook pages. She further noted that small business owners are not usually tech savvy and are hard to reach. That suggests that Facebook considers having a large number of small business advertisers a significant milestone.

Facebook Inc (NASDAQ:FB) is working to improve its global share of advertising revenue and getting more advertisers is critical for the social media company. In the fourth quarter, Facebook grew its advertising revenue by 49% to $3.85 billion. To ensure that advertisers have better tools to reach their target audience, Facebook rolled out a mobile app that allows advertisers to easily manage their ad campaigns. Mobile accounted for 69% of the total advertising revenue in the quarter.

Fastest growth in Asia Pacific and EMEA

Facebook disclosed that 80% of the newly acquired advertisers in the fourth quarter started off by paying for sponsored posts. Small business advertisers on Facebook spend an average of $5-$50 per day. The number of small business advertisers on Facebook is growing the fastest in the Asia-Pacific and Europe-Middle East-Africa regions.

Facebook rising as Google declines

Facebook is gradually increasing its share of the global ad revenue. According to eMarketers, Facebook raised its digital ad market share to 7.8% in 2014 from 5.8% in 2013. That compares to 31.1% of Google Inc (NASDAQ:GOOGL). However, eMarketer noted that Google’s share of digital ad market declined from 33.6% in 2013.

With more than 1.32 billion active users, Facebook Inc (NASDAQ:FB) provides advertisers with a huge audience to target. The company has also rolled out various resources for advertisers to ensure that they get the best from their digital ad campaigns. This strategy should enable the company to entice more advertisers to its platform.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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