Facebook Touts Its Impact on the Economy

A new report commissioned by Facebook has revealed that in 2014 the social media giant generated $227 billion worth of economic impact and 4.5 million jobs. The study analyzed how FacebookEUs marketing, platform, and connectivity effects have facilitated growth and jobs worldwide.

Conducted by consulting firm Deloitte & Touche, the study took into account the businesses that maintain pages on Facebook as well as the mobile apps and games that consumers play on the site, then measured all the economic activity that result. It also took into account the demand for gadgets and online connectivity services that are generated by Facebook.

Titled "FacebookEUs Global Economic Impact," the report concluded that an Internet-based business such as Facebook creates broad economic activity across numerous economic agents and that impact far outweighs the businessEUs own size. As a result, FacebookEUs $8 billion cost base can enable $227 billion in global economic impact.

"People believe that technology creates jobs in the tech sector and destroys jobs everywhere else," Facebook Chief Operating Officer Sheryl Sandberg told Reuters late last week. "This report shows thatEUs not true."

Worldwide Impact

DeloitteEUs report examined how Facebook stimulates economic impact by providing tools for marketers, a platform for app developers and demand for connectivity in the form of data usage and mobile devices. The study updated DeloitteEUs 2011 European report on the same subject to include analysis of other regions and countries.

"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, DeloitteEUs Global Managing Director, Technology, Media & Telecommunications.

Among other findings in the report:

  • At about $100 billion, the United States receives the biggest share of FacebookEUs economic impact.

  • Thanks to high rates of engagement, Facebook has had $21 billion of economic impact...

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