According to a study commissioned by Facebook, the social networking site has created 35,200 jobs and boosts the UK economy by £2.2 billion annually. The report was conducted by Deloitte, who released the report in Munich at the DLD conference.
The research studied the impact of Facebook on the UK economy, both direct and indirectly. Direct impacts include the wages of employees, profits and the tax paid. Indirectly, Facebook has helped businesses to increase their custom base and even increase the demand for technology like smartphones and broadband. Sheryl Sandberg, the chief operating officer at Facebook 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. Social media is proving particularly valuable for small- and medium-sized businesses, which form the backbone of the European economy.”
Facebook pages are typically launched by small businesses in order to boost their companies and advertise. According to the figures from Facebook, 18,400 UK jobs are supported by this, and have an annual value of £1.14 billion in benefit to small businesses. Companies also rely on the creation of games and applications to gain access to Facebook users, creating an “app economy” worth £467 million.
The report also reveals that sales in technology have also increased significantly, as users of the social networking spend on devices and broadband. Global revenue for Facebook in 2011 is estimated at £2.5 billion, while the UK revenue is estimated at around £200 million.
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