Ad Spend on Facebook Inc (NASDAQ:FB) by Small Businesses Increases


Facebook Inc (NASDAQ:FB) has said that the number of advertisers on the social media platform has grown from four million in September 2016 to five million. In March 2016, that figure stood at three million. About half of these advertisers create the advertisements on smartphones and tablets.

The social media giant also said that about three-quarters of the advertisers are based outside the United States though half of the revenues are from North America.

Business Facebook pages

In an earnings call two months ago, the Palo Alto, California-based company disclosed that the number of businesses that had created Facebook pages had exceeded 65 million. With regards to Instagram business profiles, the number of businesses that had set up such pages had reached 5 million. Another important statistic was that the share of ad revenue derived from the top 100 advertisers on Facebook was now less than one-quarter of the total ad revenue.

The improving performance of Facebook’s ad business has, to an extent, been attributed to the wide range of ad products that Facebook has to offer. Additionally, the measurement tools and targeting options that have been developed for advertisers by Facebook have also contributed greatly. Some of the ad formats that Facebook offers include link ads, dynamic product ads and canvas ads that are rich in media.

Advanced targeting

With regards to targeting, Facebook’s cause has been helped by the fact that the social media giant has collected enormous amounts of data on their users and this makes highly targeted advertising possible.

In order to win over small advertisers, Facebook has introduced a dedicated mobile application that can be used to build and track ads. The technology company has also offered free online courses that can assist advertisers get information and knowledge in order to run successful campaigns.

Facebook has also signed up marketing partners who can assist advertisers who need help with their advertising. Ultimately though, Facebook’s main competitive advantage is the fact that it keeps growing both the user base as well as the amount of time its users spend on the platform.

On Monday shares of Facebook rose by 0.18% to close the day at $141.04.

Ruchi Gupta works as a full-time freelancer and her content spread over from tech news to analysis on equities. Earlier, she had worked in the capacity of a Senior Research Analyst with Nigeria’s largest financial newspaper. She also had stints with companies like Genpact (for its GE domain), Zacks Research and ABN AMRO Bank spread over a period of five years. She holds a first degree in Accountancy and Post Graduate Diploma in Business Administration (First Class) from the International School and Business and Media in India.