Facebook Inc. (NASDAQ:FB) has achieved a major advertising milestone. Sheryl Sandberg, the COO, has disclosed that there are now 4 million advertisers on the social networking site, which is up from the 3 million of March this year. Sandberg disclosed this in New York on Tuesday during the Advertising Week marketing event for technology and advertising professionals.
This is a huge accomplishment for Facebook, one that takes the business right to Google’s doorstep. Last March, the company announced 3 million advertisers, saying that it was a 50 percent growth from February 2015.
So in about a year and a half, Facebook has grown from 1.5 million to 4 million. In June 2013, there were just a million advertisers on the site. Most of this growth is coming from South East Asia.
Growth Powered By Small Businesses
Most of this growth is powered by small businesses that are trying to reach more customers, concedes the COO. Sandberg also disclosed that it’s because of the move to mobile devices.
“The story is basically about the movement to mobile”, she says. Consumers are spending more time on mobile, and the advertisers know this. There is better engagement on mobile devices as well.
Mobile device advertising is accounting for 84 percent of the $6.2 billion advertising sales of Facebook in the second quarter. Mobile advertising revenues have gone up by an impressive 80 percent in this quarter.
Taking the Competition to Google (NASDAQ:GOOGL)
Advertisers on Facebook include small shops, online businesses, and mom-and-pop enterprises. Quite a few big players are there too. Many of these advertisers have traditionally been advertising on rival’s Google’s search and display networks.
Some of them still do, but Facebook advertising is way cheaper than Google and simpler. It is thus easier for individual businesses without thorough knowledge of digital marketing, to start a campaign and promote them on Facebook.
Facebook (NASDAQ:FB) plans to keep allowing everyone from opening their free pages and managing their online presence, in the hope that many of them will turn into paying advertisers. The company also wants to help advertisers by letting them select key interest groups even better.
Video is exploding on the network, though Facebook hasn’t drawn up a detailed plan of monetizing it yet. That may be the next area that fetches the company the big bucks. Two of the ten advertisers are creating video advertisements now.