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WITH MORE THAN 1.32 billion users signed up to the service, Facebook has a considerable amount of influence, so much so that it’s able to contribute a significant amount back to the world economy.
A report from Deloitte, commissioned by Facebook, found that the site generates $227bn (€195bn) to the global economy and supported 4.5 million jobs in 2014.
Of that, the US was said to capture the largest share of revenue with $100bn (€86bn), while the EMEA region (Europe, Middle East and Africa) generated $13bn (€11bn). The report says that this is relative to third parties that use Facebook, and exclude the operations of the company itself.
While the purpose of the report is to convince advertisers, app developers and device makers to continue using and increase investment in Facebook, how was this figure reached?
So what’s being valued here?
There are three main areas that contribute to this figure. Marketing effects (effectively advertising) which brought in $148bn (€127bn), Connectivity effects (bringing people from non-internet regions up to date) which amounted to $50bn (€43bn), and Platform effects (app developers) which contributed $29bn (€25bn).
It’s probably unsurprising that marketing is the biggest contributor here considering that it is Facebook’s biggest source of revenue, and it’s definitely not surprising how much the report emphasises just how valuable its advertising tools are for sales and fundraising.
To prove its point, it refers to the Ice Bucket Challenge as an example of how it’s can help share links and updates. This was down to it pushing it through Facebook Video – a product it’s been trying to push for the last year or so as it chases new ways to generate revenue. All of these methods hunt for views, interactions and likes, with the report placing emphasis on the latter to calculate gross revenue supported from pages.
And that’s where problems begin to emerge. Calculating the value of a single like is problematic for a number of reasons, and no matter what the methodology is (the report does explain the equation behind its valuation which takes into account GDP, time, and baseline sales among other things), calculating the value of a like requires some assumptions.
And what about the other areas?
In the case of Platform effects, this really boils down to games on the app store, although this valuation is really based on the success of a few apps instead of being spread across the board.
Although it really pushed its App Store back in 2013, Facebook still has a long way to go before it can match the likes of Apple or Google Play. The only game that has generated significant revenue on Facebook would be Candy Crush Saga, which is King’s highest grossing game and has 100 million players signed up to it on Facebook.
Although most of King’s other games don’t match the same success, or generate the same amount of revenue, as Candy Crush Saga, its popularity still makes it a cornerstone of Facebook games.
Connectivity effects is perhaps the most debatable part of this report as the idea that Facebook has enough influence to make people buy devices is pushing it somewhat.
Smartphones have a greater utility than just Facebook and while it is a core app, no matter what people say, it’s not the deciding factor behind a device as it is in competition with numerous other services.
The report also says that “16% of the value from unique devices purchased in the given year which are used to access Facebook may be attributable to Facebook” which is somewhat debatable when you consider this figure is based on a 2011 Oxfam survey where 707 smartphone owners responded to a multiple-choice survey.
The final figure of 16% was settled on after it made adjustments to reflect “the time spent on social networks that is spent on Facebook.”
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This is only the tip of the iceberg to the abuse the Iranian people suffer under the Islamic regime especially women and minority groups! Hopefully one day this nation will be free from the terror of their government. Rest in peace Mahsa Amini.
The wonderful Iranian people have been living with this insanity since 1979.We have neighbours who fled Iran at that time ,they were given the choice or conversion to Islam or a bullet in the head .
Remember that time the Bankers were pissed off with an Iranian leader who nationalised Iranian Oil for the benefit of Iranian people, that was weird…… I wonder how that went?
It’s almost as weird as the way thejournal.ie and the AFP are brilliant at reporting on public protest against governments who do not comply with Bankers policy agendas, in resource rich far flung nations…… But these “NEWS” outlets seem to struggle to notice or report on widescale public protests against the harmful effects of Bankers monopolistic policies (SDGs, ESG, UN Agenda 2030 etc.), when they take place in Germany, France, Italy and Netherlands.
@Special_Ed: Your comparing marbles and rocket ships. Ridiculous comment
Power to the women there. RIP to the victims.
Religion poisons everything.
@Allora: extremist religion poisons everything
@Melissa OHara: no. All religion.
@Dearbhla O Reilly: this is incorrect. Here’sone example as to why you are wrong:
Those who practice the catholic religion today are mostly respectful and decent people. Their religion is a guide for how they can live their life in a positive and loving way. I know this as an atheist who’s parents are dead sound and I’ve done ok for myself.
@Paolo Fandango: I should have added ‘who’s parents are catholic and dead sound’
@Paolo Fandango: thats not an example. That’s an opinion. Amazing how mamy believers of Religious doctrine seem to have difficulty separating things like belief, opinion, example, fact.
@Paolo Fandango: ye taking the p I s s or wha?
@Allora: Religion poisons everything.
@Paolo Fandango: most people who practice most religions are mostly respectful and decent people, it is not just a catholic trait. In fact most religions teach the common theme of loving thy neighbour as thyself or doing to others as they would wish do to themselves and, ironically, you could be practicing the basic teaching of many religions and not just one. It is the few individuals, whether it be priests or nuns or fanatics, that destroy the reputation of all religions yet we may practice the fundamental teachings without being in the institution.
So awful in this day and age.. Between this diabolical situation and the Russian war and climate change Humanity is at a cross roads.. May we all do the right thing..
That title is such poor English
@Fintan O’Halloran: I don’t follow you ?
@Gerry Campbell: Would you following follow him though?
Someone will be along in minute to blame the US for this.
@John Black: Now that you mention it..
https://www.npr.org/2019/01/31/690363402/how-the-cia-overthrew-irans-democracy-in-four-days
Imagine they had a morality police here lol
dear john black as an Iranian we believe American and democrats and ayatollah BBC are to blame .back in 1979 and even before that .they help current regime to come to the power and since they have taking advantage of every country in middle east because of their created regime as an enemy,and they don’t care about democracy and close their eyes to what’s happening in Iran now .
Almost 70 years ago Billy.
@John Black: The effects of which are still being felt today.
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