In Numbers, What is the Impact of Facebook for the Revenue of a Business?
Date: 20 – January– 2019
A new study commissioned by Facebook to Copenhagen Economics estimates that the use of Facebook Apps (Facebook, Instagram, and WhatsApp) helped around 25 million businesses to generate sales that are estimated in 208 billion Euros and 3.1 million jobs last year.
For this study, Copenhagen Economics conducted a survey of 7,720 business in 15 countries across the European Union.
According to the study, it estimates that last year, Facebook Apps helped businesses to generate 58 billion Euros in Exports within the EU and 40 billion Euros in exports outside the Eurozone, a total around 98 billion Euros in exports.
The use of digital tools was especially helpful for growing small businesses, according to the data, 59% of businesses reported that the use of Facebook Apps is important for growing their business, 58% said that the use of the Apps allowed them to lower their marketing costs and 55% of them considered that the use of Facebook Apps was instrumental to enter new geographical markets.
The study revealed that 7 in 10 businesses use Facebook Apps to export to other countries, while only 5 in 10 businesses that do not use Facebook Apps are exporting, when it comes to revenue, the group of businesses that use Facebook Apps reported that 19% of their revenue is generated from international sales, compared to only 14% for the group of businesses that do not use Facebook Apps.
According to this study, the use of the Apps allowed to lower the cost of communication between suppliers and customers, and 63% of the businesses said that they use Facebook Apps to improve their customer service.
Thanks to this study we can now have a clearer picture of the real economic impact that Facebook and its different services have for businesses, especially the small ones within the European Union.
Source: Empowering the European Business Ecosystem – An Impact Study of Business Using Facebook Apps and Technologies, Copenhagen Economics, 2020. Survey of 7,700 businesses in 15 countries in Europe.