Facebook economy generated US$225bn of economic activity and 4.5m jobs in 2014

21 Jan 2015

Facebook CEO Mark Zuckerberg

The economic impact of Facebook in 2014 resulted in some US$225bn worth of economic activity and generated more than 4.5m jobs worldwide, according to researchers at Deloitte.

Commissioned by Facebook, the study estimates that the social network, with a cost base of about US$8bn, enabled global economic impact of US$225bn and 4.5m jobs around the world in 2014.

The report by Deloitte, titled Facebook’s Global Economic Impact, analysed how Facebook’s marketing, platform, and connectivity effects have facilitated growth and jobs around the world.

“Across the world there is a greater urgency about creating jobs,” said Facebook’s chief operating officer Sheryl Sandberg.

“The good news is that the tech industry is powering the economy and creating jobs within and beyond its own campuses. Every day, businesses of all sizes, sectors and skill sets are using the Facebook platform to grow and expand.”

The US is estimated to have captured the largest share of economic impact, with some US$100bn worth of business enabled in 2014.

Facebook helped generate US$21bn worth of economic activity in Central and South America.

If Facebook were a country …

“Our study finds that Facebook enables significant global economic activity by helping to unlock new opportunities through connecting people and businesses, lowering barriers to marketing, and stimulating innovation,” said Jolyon Barker, Deloitte’s global managing director for Technology, Media and Telecommunications.

The thriving Facebook app economy in EMEA is understood to have generated US$13bn worth of economic activity in the region.

Worldwide, Facebook connects more than 1.35bn people with friends, families and colleagues around the world.

Marketing effects in the form of advertising and Pages were worth US$148bn and were the largest areas of economic activity in the Facebook ecosystem, largely facilitated by third parties.

Facebook developer tools that power third-party apps are understood to have enabled an estimated US$29bn worth of economic impact.

The purchase of mobile devices and connectivity services motivated by Facebook contributed an estimated US$50bn worth of economic impact.

“By helping businesses connect with new and existing customers, and by helping developers share their apps with the world, the Facebook community is creating a lot of jobs and economic opportunity around the world,” Facebook co-founder and CEO Mark Zuckerberg posted on Facebook last night.

“Thank you for all of the businesses you’re all building and all the new jobs and opportunities you’re creating. You’re making the world more open and connected, and we’re proud to support you.”


Mark Zuckerberg image at top via Shutterstock

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years