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Report - Facebook has an overall economic impact of €2.6 billion in the UK

Report - Facebook has an overall economic impact of €2.6 billion in the UK
Friday February 10 2012

Across the EU and Switzerland, Facebook enabled an economic impact of €15.3 billion in 2011, supporting 232,000 jobs

Deloitte’s report,‘Measuring Facebook’s economic impact in Europe’ breaks down Facebook’s economic impact across Europe and also in France, UK, Germany, Spain and Italy.

Chris Williams, Deloitte Economic Consulting partner said: “Facebook embodies a new generation of social media organisations that have significant global impact and create economic value through enabling ecosystems of businesses to flourish. Traditional narrow measures of economic impact are limited and it is critical to consider the broader impact of Facebook in allowing other parties to create value across the economy.”

The report examines Facebook’s economic impact through narrow effects*, caused by its day-to-day activities within Europe, and broad effects, related to value from third parties as a result of the Facebook ecosystem.

Across the whole of the European Union and Switzerland the report shows that Facebook has supported 232,000 jobs and enabled an estimated €15.3 billion of economic activity in 2011.

Speaking at today’s DLD conference in Munich, Facebook’s Chief Operating Officer Sheryl Sandberg said: "Today's report shows that Facebook is about a lot more than sharing pictures or keeping up with friends; increasingly social media means growth and jobs.

“As the Deloitte studyhighlights, social media is proving particularly valuable for small and medium sized businesses, which form the backbone of the European economy.

The impact of social media is a bright spot in challenging times, but growth won’t happen on its own. We need to make sure that we invest in the right education, training, technology and networks so that social media can continue to drive innovation and economic growth."

The report highlights:

•Facebook supports €1.37 billion in ‘business participation effects’ in the UK as businesses use Facebook’s pages to promote their brand, raise awareness, advertise and generate new business. In particular small businesses benefit from such a developed customer relations management system at no cost. ‘Business participation’ enabled by Facebook supports 18,400 jobs in the UK.

•When widened to the whole of the EU, Facebook enables €7.3 billion of broad economic impacts through Business Participation supporting 111,000 jobs.

•Through ‘Platform effects’, notably the app economy servicing the Facebook platform and social activities, Facebook has enabled €561m of economic activity. Facebook generates value by giving software developers a platform to develop apps for users, generating revenue and stimulating innovation. It also creates value by making it easier for users to organise events and invite larger numbers of attendees, which in turn can lead to greater expenditure than would have been the case otherwise. This activity generates 7,500 jobs in the UK. When widened to the whole of the EU Facebook enables €2.2billion of broad economic impacts through Platform effects supporting 33,000 jobs.

•Facebook has supported increased technology sales through increased demand for devices and broadband connections, supporting €659 million in technology sales and 8,800 jobs in the UK. Across the whole of the EU Facebook enables €5.5billion in technology sales, with 85,300 jobs associated with supporting this.

 

Tagged as: Facebook

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