Small Businesses to Increase Facebook Ad Revenue in the Future

A new high has been recorded, as per the latest earnings report of Facebook. Revenue has increased significantly to bring in the maximum profit till date. Each category viz. mobile, daily actives and monthly activities have seen a rise in user totals. When such is the scenario, it can be expected that in the forthcoming quarter, Facebook will see more profit. After all, the holiday season is knocking on the door and ad revenues are always at the peak during this time. With 1 million small business advertisers (another first), Facebook has all the more reason to rejoice. If you are wondering whether small businesses can add to the revenue generation of this company in the future, have a look at this post.

Facebook Ad Revenue

A look at some Numbers

As mentioned earlier, 1 million small business owners are currently using this social platform to advertise about their products. This is the first time when the site has seen such a surge in small business advertisements. As per Facebook’s small business director, Dan Levy, the number has doubled, from what it was in the last year.  Apart from that, 25 million active small business company pages are there in Facebook. This means that 4 percent of companies which are using this site for interacting with their clients, are also advertising in it. The numbers imply that there is huge potential for Facebook to earn greater revenue.

Why SMBs are not so Much into Facebook Advertising

Though the number is obviously on the rise, yet they are minimal when compared to big brands. There might be some reasons for this. One of the reasons is that for an advertising campaign, a product must be ready. Generally, many small businesses do not have the necessary preparation. So, they do not advertise. Another probable reason for SMBs to not advertise in Facebook might be the lack of resources and time. In order to get the best results from Facebook advertising, it is essential to have substantial resources dedicated completely for this purpose.

Facebook preparing itself

Facebook is taking some measures so that it can be ready when these types of businesses start advertising more. It will become an easier job for small and medium business owners to advertise in this social platform. They will get a simple advertising interface, which means setting up a campaign will be quick and easy. They no longer have to mention any education experience, interests, age groups, etc. for their target audience. All they need to do is write their advertisement and mention their budget.

It then becomes the responsibility of Facebook, to make the ads visible to the right users. The ads will be visible mostly to the people who have liked that page and also to their friends.

It is proven that easier interfaces will bring in more advertisers. This statement can be supported from the record which states that last year, 62 percent of new advertisers have come to Facebook through such simple interfaces.

The numbers, along with Facebook’s measures are bound to urge more small and medium businesses to advertise their products here, thereby increasing Facebook ad revenue in the future.

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