Facebook hits 1m active advertisers milestone

Social networking giant Facebook claims to have hit a new benchmark of 1 million active advertisers using the site in the past 28 days.

Facebook director of small business Dan Levy reveals the milestone in a thank-you post addressed to advertisers published on the company’s news blog.

“We all start small. And whether you’re reaching your first customer or your millionth, I’m thankful that we’re a part of your business,” Levy writes.

In an interview with Reuters, Levy explains the step-up path that leads small business users to become advertisers.

“Most small business owners start off as Facebook users, then migrate to become page owners, and from there migrate to become advertisers,” he says.

Facebook reported advertising revenue rose 43 per cent during the first quarter this year, the fastest it has grown since 2011.

The announcement comes shortly after Facebook revealed a move to rationalise its myriad advertising formats, with plans to halve the number of formats – currently standing at 27 – on offer.

In Australia, Facebook claims 12 million active users per month, giving it market penetration of 75 to 80 per cent.

But while deeply entrenched as a social hub, Facebook has plenty of catching up to do in terms of claiming a share of online ad revenue from major accounts in the Australian market.

A recent report in The Australian Financial Review revealed SMI data detailing advertising revenue from major media buyers for major online media players in the Australian market for calendar 2013:

• Google: $100.7 million
• Mi9: $30.1 million
• Fairfax Digital: $30.1 million
• Yahoo!7: $24.2 million
• News digital: $19.2 million
• Facebook: $10.2 million

The SMI figures do not include revenue from small advertisers that book ads directly through the online media groups.

New Facebook Australia managing director William Easton told the AFR he planned to double the size of Facebook’s local operation to grow revenue, flagging an industry-specific approach used by rival Google as well as many other major corporate conglomerates.

Credits; brw.com.au