Facebook Report Says It Adds More Than $200 Billion to Global Economy

Facebook Report Says It Adds More Than $200 Billion to Global Economy
Image credit: 2nix Studio / Shutterstock.com

Free Book Preview Ultimate Guide to Facebook Advertising

Get a glimpse of how to use Facebook’s marketing resources to your business’s advantage.
2 min read
This story originally appeared on Reuters

With 1.35 billion users of its social network, Facebook Inc would rank as the world’s second-most populous nation if it were a country.

While its users may populate only a virtual country, Facebook says it generates a lot of real economic activity – $227 billion worth of economic impact and 4.5 million jobs in 2014, according to a new study by consulting firm Deloitte & Touche that Facebook commissioned.

The report looks at the businesses that maintain pages on Facebook as well as the and games that consumers play on Facebook and measures all the economic activity that result. It also considers the demand for gadgets and online connectivity services that are generated by Facebook.

When a company advertises to customers on Facebook, for example, some of the resulting sales can be directly attributed to Facebook. When consumers donated $100 million for research into amyotrophic lateral sclerosis during this summer’s Ice Bucket challenge, Facebook’s auto-play video ads were a key factor.

“People believe that creates jobs in the tech sector and destroys jobs everywhere else,” Facebook Chief Operating Officer told Reuters in an interview on Friday. “This report shows that’s not true.”

According to Sandberg, Facebook is helping create a new wave of small businesses in everything from fashion to fitness. She cited a group of young women in Bengaluru, India, who started a hair accessory business using Facebook and a mother in who started the Lolly Wolly Doodle line of clothing, selling to customers through Facebook.

The report comes as many established industries are critical of Web startups such as ride-sharing service Uber and home-sharing service Airbnb. Critics contend that the services circumvent regulations and threaten established taxis and hotel businesses.

The report’s data will provide Sandberg with something to talk about when she travels to the in Davos, Switzerland, this week. On Thursday, Sandberg will be on a panel alongside Inc Executive Chairman Eric Schmidt and Microsoft Corp Chief Executive Satya Nadella about the future of the digital .

“We’re no longer in a place where large companies can create the jobs the world needs,” Sandberg said.

(Reporting by Alexei Oreskovic; Editing by Ken Wills)

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Amplify your business knowledge and reach your full entrepreneurial potential with Entrepreneur Insider’s exclusive benefits. For just $5 per month, get access to premium content, webinars, an ad-free experience, and more! Plus, enjoy a FREE 1-year Entrepreneur magazine subscription.
Discover a better way to hire freelancers. From business to marketing, sales, finance, design, technology, and more, we have the freelancers you need to tackle your most important work and projects, on-demand.

Latest on Entrepreneur