
Updated · Mar 30, 2023
Updated · Feb 27, 2023
I challenge you to ask around and find me one person who doesn’t know what Facebook is!
The platform might have started as Harvard’s private social media, but has turned into a global phenomenon. Everyone and their aunt have a profile nowadays.
This makes Facebook the perfect hunting ground for marketers.
You might have noticed that Facebook is swamped with ads. But do they really generate enough revenue to be worth the hassle?
We’re here to answer your burning questions.
Let’s look at some Facebook ad revenue statistics to kickstart this journey.
You’d be mad to not pay attention to those numbers. Especially if you’re a marketer, they might give you vital insight into your next strategy.
Let’s break them down for you, starting with the most recent data for 2022.
Facebook ad revenue statistics for 2022 show that numerous businesses are benefiting from the service.
How?
Let’s see.
(Source: Statista)
This is a 17% year-on-year increase from the first quarter of 2019 - $15.07 billion. Despite the rise, the figure recorded for the Q1 2020 is a 15.9% decrease from Q4 of 2019 - $20.736 billion. Facebook ad revenue stats for 2021 show the coronavirus pandemic has crippled many industries and placed numerous businesses on hold, reflected in the social media platform marketing revenue.
What’s more shocking is that this figure makes up for 98.3% of the total Facebook revenue for the Q1 of 2020 - $17.737 billion.
(Source: PR News Wire)
Countries like India (280 million), United States (190 million), Indonesia (130 million), and Brazil (130 million) lead the way with the highest number of Facebook users.
(Source: Statista)
A Facebook advertising campaign that is not optimized for mobile is well on its way to failure. Why’s that?
According to statistics on Facebook mobile ad revenue, 3.81 billion people make use of social media each month, with 2.6 billion being active Facebook users. 96% of them access the platform using their mobile devices.
(Source: Statista)
Advertising was never the primary initiative behind creating Facebook. Still, with people flocking to the platform, useful data is being generated that can be used for profit-making. This birthed the idea of Facebook advertising.
When you register and interact with the platform, you create data that Facebook can use to understand your likes and interests.
And speaking of data, did you know that Facebook users create 2.46 million pieces of content every 60 seconds?
This sort of data is essential to advertisers. In Q1 2019, Facebook had just 7 million active advertisers in their books. Fast-forward to Q1 2020 and over a million more have jumped on the bandwagon.
(Source: Statista)
According to Facebook financial stats, the total ad revenue for Facebook in 2019 was $69.7 billion. In 2020, the company saw a 20.7% growth in ad revenue sales.
In 2013, the figure was just below $7 billion and increased by about $10 billion in 2015. This spectacular growth is a result of millions of new users registering to the platform daily.
(Source: Lyfe Marketing)
What’s more, Facebook ad revenue statistics for 2022 show that 93% of these marketers are actively using Facebook advertising to promote their various businesses.
(Source: Backlinko)
Cost-per-click is the amount you pay for every click that your ads get on Facebook. For businesses running conversion ad campaigns, it is crucial to have the lowest cost per click possible because it ensures that you are spending the least amount of money for every sale you make.
Imagine having a CPC of $4.15 for a $15 product, whereas your competition is selling the same product at the same price but at a lower CPC of $1.2. The competition is making more money than you on that same product. Hence, Facebook ad revenue stats show that to get the best CPC rates for your conversion adverts, it is advisable to use videos.
(Source: Word Stream)
Click-through-rate is a measurement in percentage that tells advertisers how frequently people are clicking on their ads. Simply put, it is a ratio of clicks to impression.
Say your ad gets 700 views on Facebook, and only 55 people click on it, then your CTR for that ad is 55/700 x 100= 7.85%.
(Source: Hootsuite)
On average, men click on 10 ads per month, whereas women click on an average of 14 ads per month.
In addition to the most curious Facebook ad revenue stats for 2022, we've gathered some more information that may surprise you.
(Source: Oberlo)
This figure was registered as of January 2021, meaning the number of daily active Facebook users has most likely grown by now. And all of these users are just within reach through the Facebook ads platform.
Of course, it gets even better.
(Source: Oberlo)
In 2021, there are roughly 7.9 billion people on Earth. It goes without saying that babies and toddlers probably don’t have a Facebook account. (And I do mean “probably” because some people make a profile for their newborns). Additionally, most people from our grandparents’ generation probably don’t have one either.
But most Baby Boomers, millennials, and Gen Z are on Facebook. And they’re the most targeted demographic by marketers.
(Source: Hootsuite)
Although almost the entire US population knows about Facebook (95%), only about two-thirds of them actively use the platform. This is up from 61% last year.
It’s important to note that 63% is the general figure. The percentage of Americans that use Facebook varies by age. Facebook marketing stats show that 64% of people aged 12 to 34 use the platform. Those aged 35 to 54 are the biggest group of users, with 74%. And just over half (52%) of people 55 years and older can also be found on Facebook.
Today, about 71% of all Americans use the platform.
(Source: Hootsuite)
If you had asked me to guess which platform is most successful for B2B marketing, I would’ve bet my money on LinkedIn. Facebook advertising statistics from 2022, however, show us Facebook is leading in this race too.
But isn’t Facebook more of an intimate and personal platform than LinkedIn?
It is.
That makes it perfect for B2C marketing too.
(Source: Hootsuite)
The other 2% either have a business that’s incredibly niche… or they’re just plain stubborn.
The line between business and personal on Facebook is incredibly thin. This makes it perfect for most marketing strategies.
Drawing in an audience gets easier with the help of Facebook, but keep in mind that we’re talking about the top platform here. Competition is huge, and it takes more effort to find your place under the sun.
(Source: Facebook, Inc.)
Facebook is good for far more than just ads. Among other things, people use social media for research, so it is vital for businesses to have social media pages. If you have your own page, you can help people with their research AND sell them something once they’re ready to buy.
Facebook can also be used to connect with customers. Positive social media experience is proven to lead to recommendations, and that’s a word-of-mouth marketing strategy right here.
Thank me later.
(Source: CNBC)
This growth would amount to $106.87 billion in Facebook ad sales. Keep in mind that the forecast doesn’t include Instagram Shops or Reels. These products by Facebook could add hundreds of millions of dollars by the end of the year.
Shall we specify the definition of ‘ad revenue’?
Ad revenue is the income apps and social media platforms earns through advertising.
As we can see, Facebook has been generating quite the numbers throughout the years.
(Source: Statista)
That’s quite an impressive number for only three months. It is even more impressive when compared to Facebook’s 2018 Q4 ad revenue, which was $16.6 billion.
Still, the surprises in those Facebook ad revenue statistics are just starting.
(Source: The Conversation)
The platform’s main and strongest form of income is digital ads. Other Facebook income sources include in-app payments, experimental internet services, and enterprise software.
Facebook sure knows its users - maybe even a bit too well. It’s the kingdom of targeted ads.
The platform knows exactly how to lure us in. And that we just can’t seem to resist the good old call-to-action.
(Source: Invesp)
A call to action, in the marketing sense, as defined by Google Dictionary, is “a piece of content that drives its recipient to perform a specific act.”
Other popular call-to-action buttons include “Click here,” “Book now,” “Learn more”, etc.
Their purpose is to raise ad engagement.
Facebook ad revenue statistics show there was indeed an increase in ad impressions in Q2 of 2020.
(Source: Hootsuite)
Impressions are the times the ad has been viewed.
The aforementioned increase is all thanks to newsfeed ads and call-to-action buttons.
(Source: Hootsuite)
Paid advertising can provide an instant boost to your Facebook ad sales. It’s more precise when it comes to audience targeting.
Let’s admit it, poorly-targeted ads are a waste of resources. You can’t advertise high-heeled shoes to men. Your ROI will be quite likely zero.
More precise targeting also guarantees higher conversion. Having your ads tailored to a specific audience will lead to more clicks.
But aren’t Facebook ads expensive?
(Source: WebFX)
There’s no minimum cost for monthly ads, so it all depends on how much you’re willing to spend. That’s one of the bigger benefits of Facebook as an advertising platform. It not only gives you wide reach, but it can also be extremely budget-friendly.
(Source: WebFX)
It all depends on your industry. For example, the average CPC for apparel is $0.45, while home improvement is apparently way more competitive with an average CPC of $2.93.
CPC also differs in different countries.
(Source: AdEspresso)
Between 2018 and 2019, the average CPC rose from $0.31 to $0.45. This was because there was an increase in the demand for Facebook ad space compared to its supply.
Because of this logic, you might expect an increase for the year 2020.
However, Facebook ad revenue statistics show that wasn't quite the case, as the average price decreased.
(Source: Linear Design)
Sounds quite reasonable.
Now let’s discuss the different advertising opportunities that Facebook grants us.
(Source: HootSuite)
Google and YouTube currently receive more traffic.
It then becomes more apparent why companies spend so much money investing in Facebook ads.
(Source: HootSuite)
While the majority of Americans know about Facebook and use the platform, they are not Facebook’s largest audience.
Facebook reaches about 190,000,000 users in the US, but compare that to its 310,000,000 users in India.
There are numerous types of Facebook ads. Let's check them out in more detail.
As the name suggests, these ads use images to attract attention. People are visual creatures, so adding an image to your ad guarantees higher engagement. Your image ads can be:
People nowadays would rather watch a video than look at pictures or read about a product. It is proven that they remember video content better than any other type of ads.
Videos also get shared more often.
So, if you want optimal results, videos are your friend.
In the basic sense, a slideshow means a sequence of a few images.
The Facebook ad format lets you combine videos, images, text, and sound. Perfect for telling a story.
It’s like a video, but without the time and money spent on production.
Defined by Facebook as: “full-screen, post-click experience that lets you bring your brand or products and services to life on mobile”, the format lets people browse images and videos of your products. It works well in combination with the formats we mentioned so far.
Now to avoid information overload and for the sake of pure entertainment, I’m bringing to your attention my favorite fun facts about Facebook.
There are so many fascinating facts about the tech giant, so we decided to share some of the most curious ones.
(Source: OhFact!)
Although Artsy proclaimed blue to be the world’s favorite color, that’s not the reason behind Facebook’s blue skin. The actual reason is Mark Zuckerberg is color blind to red and green.
(Source: WordStream)
Andrew Bosworth, one of the Facebook engineers, said he and his team fully supported the idea of the “Awesome” button. Zuckerberg, however, wasn’t as thrilled. They eventually settled on the “Like” option.
(Source: CNN)
Well, Shakespeare did turn “elbow” into a verb, so what’s stopping Facebook? Because of the social platform, we’re also using words such as “unfriend” and “like” as a noun.
(Source: Mashable)
Before it underwent a huge redesign back in 2007, Facebook’s home page featured a man’s face. It was partly hidden by a binary code, so his identity was hard to discover. David Kirkpatrick’s book, The Facebook Effect, solved the mystery for us. It turned out to be the face of Al Pacino.
(Source: Statista)
It used to be Shakira’s, but now the throne belongs to the Portuguese footballer. As of January 2020, he has 122,263,670 followers. And I can hardly keep up with my 5 friends.
Hopefully, you found those Facebook ad revenue statistics interesting and informative! Till next time!
Teodora Dobrilova
Teodora devoted her whole life to words – reading, writing and trying to be original on social media. She got certified in digital marketing but still feels she’s not cool enough to be an influencer. (We all disagree – she influences the team pretty well.) She finished a master’s degree focused in Literature, Publishing, Mass Media. Her hobbies include traveling, and reading. Teddy hopes that yoga will be the thing to finally teach her some patience and show her the path toward world domination. Maybe modern tech can also help her with that.
Latest from Author
Your email address will not be published.
Updated · Mar 30, 2023
Kris Soliongco
Updated · Mar 30, 2023
Updated · Mar 29, 2023
Updated · Mar 30, 2023