Facebook Now Has 1 Million Advertisers

Ads make up 85% of company's total revenue

Facebook now has 1 million companies and brands advertising on its platform, according to Reuters. This figure represents active advertisers, meaning those who have advertised on the site in the past 28 days.

A vast majority of these are small business owners who often grow their local base via individual accounts and pages before becoming advertisers. The number of small businesses with Facebook pages is around 16 million.

A base of 1 million advertisers means Facebook is able to specifically target ads to users who helpfully provide their location.

"Once [Facebook] launched new ad products targeted to small businesses in the middle of last year, they were able to significantly accelerate their revenue growth," Brian Wieser, an analyst with Pivotal Research Group, wrote in a note to clients.

According to eMarketer research, small advertisers funneled approximately $32 billion into online ads in 2012. Small- and medium-sized businesses are vital to Facebook's ad model, Wieser said. “While some observers might read this data as implying weakness in growth from other segments of advertisers, we view this very positively, as it speaks to the predictability and durability of the company’s revenue growth,” Wieser wrote.

In the first quarter of 2013, Facebook's ad revenue grew 43 percent to $1.25 billion, with mobile ads accounting for 30 percent of that revenue. Advertising accounts for 85 percent of Facebook's total revenue.

Meanwhile, Mashable reported, Facebook will delay its video ad initiative until the fall. An unnamed source told Mashable that Facebook is trying to convince advertisers that the 15-second, autoplay video spots are worth $1 million a pop.

Publish date: June 19, 2013 https://dev.adweek.com/digital/facebook-now-has-1-million-advertisers-150478/ © 2020 Adweek, LLC. - All Rights Reserved and NOT FOR REPRINT