How Many Businesses are on Facebook? [The Ultimate Facebook Business Statistics Guide]
Introduction
With over 2.9 billion monthly active users, Facebook reigns supreme as the world‘s largest social media platform. Its unparalleled reach and diverse user base make it an essential tool for businesses looking to connect with current and potential customers online.
But just how many businesses are actually using Facebook? And how are they leveraging the platform to achieve their goals? In this comprehensive guide, we‘ll dive into the key statistics behind business usage of Facebook. From the total number of business Pages to advertising spend and engagement rates, we‘ll explore the data that demonstrates Facebook‘s value as a business platform and share insights on how companies can maximize their success.
Facebook‘s User Base and Potential Reach for Businesses
To understand the opportunity Facebook presents for businesses, let‘s start with the platform‘s massive global user base. As of Q4 2021, Facebook boasts 2.91 billion monthly active users and 1.93 billion daily active users. Nearly a third of the entire world population uses Facebook regularly.
But it‘s not just about sheer numbers – Facebook‘s user demographics span a wide range of ages, genders, locations and income levels. 43% of global Facebook users are female, while 57% are male. Over 98% of users access the platform on a mobile device.
In the US, 72% of adult internet users use Facebook, including:
- 88% of 18-29 year olds
- 84% of 30-49 year olds
- 73% of 50-64 year olds
- 50% of those 65+
The percentage of US Facebook users in higher income households is also significant. 83% of adults from households earning $75,000+ per year are on Facebook.
In terms of global reach, India has the largest Facebook user base with over 349 million users. The United States is second with 193 million, followed by Indonesia, Brazil and Mexico. Facebook supports over 100 languages and even the African continent boasts 216 million users.
The platform‘s popularity across demographics provides immense opportunity for businesses to reach their target audiences, no matter how niche. Whether a local shop or international brand, there are likely potential customers on Facebook relevant to any business.
Businesses with a Presence on Facebook
So just how many businesses are taking advantage of this potential reach? Out of the over 200 million businesses on Facebook, 60 million have a Facebook Page.
A Facebook Business Page allows organizations to post organic content, engage with customers, display important business info, acquire reviews and more – all for free. It‘s often one of the first steps to establishing an online presence.
The number of business Pages on Facebook has steadily increased over the years as the platform has emphasized its business offerings. In 2016 there were 50 million active business Pages, growing to 60 million by 2017 and remaining steady since then despite the introduction of additional business tools.
Adoption of Facebook Pages varies by industry and business type. In a survey of US small businesses, the retail industry had the most representation on Facebook at 89%, followed by advertising/marketing (87%), professional services (82%) and food/beverage (78%).
Interestingly, franchise businesses have an exceptionally high Facebook presence. A full 95% operate a Facebook Page.
A few examples of businesses successfully using Facebook include:
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Lego: With over 13 million likes and creative video content, Lego uses its Page to inspire purchases and brand loyalty. One video received 7.6 million views.
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Visa: The credit card company‘s Page serves as a customer service hub, showcasing its ability to quickly address consumer questions and concerns.
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Starbucks: By sharing enticing product photos and engaging with fans, Starbucks‘ Page has become a go-to source for coffee lovers. A pumpkin spice latte post received over 20,000 reactions.
So while not every business may need a Facebook Page to succeed, the majority clearly see value in the direct line of communication to customers it provides. Especially for consumer-facing brands, a Facebook Page has become a staple of online presence.
Business Activity and Engagement on Facebook
Having a Facebook Page is one thing, but are businesses actively using them? The data says yes. Of the 60 million global business Pages, 40% post regularly, at least once per week.
For businesses that post, visual content reigns supreme. Photos make up 75% of Facebook Page content, while links make up 10%, videos 7% and plain text and status updates just 6%.
This aligns with overall content engagement trends on the platform. Posts with images produce 650% higher engagement than text-only posts, and posts with videos have 220% more engagement on average compared to those with solely images.
The average engagement rate for business Page posts is 3.91%. However, this varies significantly by vertical. The highest average engagement rates are seen in the fitness (6.21%), recreation (6.09%) and pet services (5.74%) industries. Finance (2.63%), retail (2.61%) and telecom (2.21%) fall on the lower end but still garner likes, comments and shares.
Another key area of business-customer interaction on the platform is Facebook Messenger. 20 billion messages are exchanged between people and businesses on Messenger each month. The average business response time is under one day and 67% of people say they‘re likely to purchase from a company they can reach on Messenger.
These statistics show that beyond just having a presence, businesses are using Facebook to distribute content, encourage engagement and provide real-time communication to best serve their customers. An active, optimized Facebook strategy has become essential for success on the platform.
Facebook Advertising and Business Spending
Of course, business activity on Facebook extends beyond organic content. Facebook‘s robust advertising platform allows companies to reach new audiences and drive measurable business results… for a price.
Over 10 million active advertisers use Facebook to promote their business each month. The total amount spent by businesses on Facebook ads topped $100 billion in 2021, a 55% year-over-year increase. Facebook ad revenue growth is projected to continue, reaching over $135 billion by 2023.
The businesses spending the most on Facebook ads are often in the retail, consumer goods and entertainment industries. In 2020, department store Macy‘s spent $23.5 million on Facebook ads, while Disney spent $18.8 million.
However, Facebook ads are popular among small and medium-sized businesses as well. The average SMB advertisers spend $3,600 per year on Facebook ads. Many are drawn to the platform‘s targeting capabilities, which allow them to reach niche audiences based on interests, behaviors and more.
The typical cost-per-click (CPC) for Facebook ads is $0.94 across all industries. Sectors with the highest average CPCs are finance ($3.89) and consumer services ($3.08). The average click-through rate (CTR) for a Facebook ad is 0.89% but can be much higher for well-targeted campaigns.
Perhaps the most important Facebook ad metric is return on ad spend (ROAS). This shows the actual business results generated per dollar spent on advertising. The average Facebook ads ROAS is $8, meaning businesses are earning an average of $8 for each $1 they spend.
The effectiveness of Facebook ads, combined with the platform‘s unmatched reach, explains why an increasing share of business advertising budgets are being allocated to the platform. Digital ad spending (of which Facebook captures a large percentage) is expected to comprise 66% of total media ad spending by 2023.
Additional Business Tools and Features
An organization‘s success on Facebook extends beyond the core offerings of Pages and ads. Facebook continues to introduce features to help businesses connect with customers and drive sales directly on the platform.
Facebook Marketplace, a Craigslist-style C2C platform, is now used by 800 million people globally each month. Many small businesses have found it a valuable additional selling channel. One in three people in the US use Marketplace each month and there are over 1 billion Marketplace visitors globally each month.
Facebook Shops, which allows businesses to create an online store connected to their Page and Instagram profile, has been another e-commerce game changer. Over 300 million users view Shops each month and 70% of "shoppable" product detail pages are discovered via News Feed, Groups and Stories. Though a relatively new offering, 18% of US business decision-makers said they‘ve sold products through Facebook Shops.
Other ways businesses are connecting with customers on Facebook include:
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Groups: There are over 100 million active groups on Facebook. Brands can participate in relevant public groups or create their own communities to build deeper relationships with followers. 50% of Group members say being part of a Facebook Group makes them more likely to buy from a brand.
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Events: Facebook Events can be used to promote sales, product launches, webinars and more. 35 million users view a public Facebook Event each day.
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Lives: Facebook Live broadcasts from brands have increased significantly in recent years. Live videos produce 110% more real time comments and 6 times more interactions compared to regular videos.
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Facebook Business Suite: A relatively new offering, Business Suite combines tools for Facebook, Instagram and Messenger so brands can manage posts, ads, customer service and analytics from a single interface.
The variety of features businesses can use to engage customers on Facebook is constantly expanding. Forward-thinking brands will stay on top of and test new offerings as part of their Facebook strategy.
Challenges and Considerations
Though the statistics demonstrate Facebook‘s effectiveness as a business platform, success is not guaranteed. As with any marketing channel, there are challenges and important considerations to keep in mind.
One issue businesses must contend with is the continuous decline of organic Page reach. Facebook‘s algorithm prioritizes content from friends and family, meaning only a small percentage of a Page‘s followers may see its posts. The average organic reach for a Facebook Page post is 5.7%. For large Pages with over 500,000 likes, that number drops to 2.3%.
This means consistently creating valuable, engaging content is more important than ever. Businesses should focus on sparking meaningful interactions and utilizing formats favored by the algorithm like video and Live.
Even then, putting some paid promotion behind important posts has become almost essential. Facebook itself recommends businesses think of their Page as a "discovery engine" and use ads to ensure content reaches its full target audience.
Businesses must also be prepared to deal with the inevitable negative feedback that comes with being on social media. Responding quickly and professionally to negative reviews or comments is a must. Having clearly defined community management and escalation processes can help prevent customer service missteps.
Staying compliant with Facebook‘s Pages, Groups and Advertising Policies is another key consideration. Businesses should regularly review guidelines to ensure their content and ads are not at risk of being removed. Following advertising best practices like including correct disclaimers is also critical.
Finally, while Facebook is a powerhouse, it‘s not the only social media platform that matters. Diversifying efforts to the likes of Instagram, YouTube, TikTok and Twitter as relevant to target audiences and goals is recommended. A multi-platform approach ensures businesses aren‘t overly reliant on any single channel.
The Takeaway
The statistics paint a clear picture: Facebook is an essential tool for businesses looking to reach and engage customers online. We can recap a few key insights:
- Facebook‘s 2.9 billion global users provide unparalleled opportunity for businesses to connect with target audiences
- 60 million businesses use a Facebook Page and many are finding success through consistently posting engaging content
- Facebook advertising is booming with over 10 million active advertisers and a 55% YoY increase in ad spend
- Additional features like Shops, Marketplace, Groups and Live provide diverse ways for businesses to build deeper customer relationships and drive sales
But to reap maximum results, businesses must take an active, strategic approach. This means:
- Customizing a Page to reflect the brand‘s unique identity
- Creating a content calendar to consistently publish posts of value
- Leveraging Facebook advertising tools to reach desired audiences
- Engaging authentically with customers and responding to feedback
- Diversifying efforts across multiple Facebook features and platforms
The businesses that will win on Facebook in the years to come are those that stay ahead of evolving trends and adopt new offerings that align with their goals. Careful tracking of key performance metrics will also be required to continuously optimize efforts.
No matter the industry or size, a robust Facebook presence should be a key component of a business‘s digital marketing strategy. The potential to reach and convert new customers is simply too great. With the right commitment to engaging content, authentic interactions and diversified tactics, Facebook can be a true growth engine.