Last Updated: June 23, 2020
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.
Amazing Facebook Ad Revenue Statistics
- In 2020, Facebook has 1.73 billion daily active users.
- 67% of marketers cite Facebook as the most important social media for their strategies.
- More than 90 million small businesses have Facebook pages.
- The platform got $17.44 billion from targeted ad sales in Q1 2020.
- Mobile is responsible for 94% of Facebook ads revenue.
- Facebook received $16.6 billion from ad revenue in 2019’s Q2.
- The total Facebook ad revenue for 2019 was $69.7 billion.
- The average Facebook user checks out 11 ads per month.
- 74% of the call-to-action buttons say “Shop now.”
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 2020.
Facebook Ad Revenue Stats for 2020
Facebook ad revenue statistics for 2020 show that numerous businesses are benefiting from the service.
1. Facebook’s ad revenue for Q1 2020 was $17.44 billion.
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 2020 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.
2. As of March 2020, Facebook’s daily active users are 1.73 billion.
(Source: PR News Wire)
Facebook’s active monthly users now stand at 2.6 billion. These figures vary slightly from the 1.62 billion daily active users, and 2.45 billion monthly active users recorded in 2019. Facebook is averaging around 32 million new active users daily. 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.
3. Mobile is responsible for 94% of Facebook ads revenue.
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.
4. As of Q1 2020, Facebook has 8 million active advertisers.
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.
5. Total Facebook’s ad revenue for 2019 was $69.7 billion.
According to Facebook financial statistics, in 2018, the total ad revenue for Facebook was $55.838 billion. In 2013, the figure was just below $7 billion and increased by about $10 billion in 2015. This is a result of millions of new users registering to the platform daily.
6. 67% of marketers cite Facebook as the most preferred social media platform for their business.
(Source: Lyfe Marketing)
What’s more, Facebook ad revenue statistics for 2020 show that 93% of these marketers are actively using Facebook advertising to promote their various businesses.
7. Video ads have the lowest cost-per-click (CPC) when compared to other ad formats.
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.
8. The average click-through-rate (CTR) of Facebook ads across all industries is 0.89%.
(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%.
9. The average Facebook user checks out 11 ads per month.
On average, men click on 10 ads per month, whereas women click on an average of 14 ads per month.
General Facebook Ad Revenue Statistics
In addition to the most curious Facebook ad revenue stats for 2020, we’ve gathered some more information that may surprise you.
10. Facebook had 1.62 billion daily active users in 2019.
This is an insane number and a huge pool of potential clients. All of them – just within reach through Facebook’s ads platform.
Of course, it gets even better.
11. Facebook had 2.45 billion monthly active users for the same period.
In 2020 there are roughly 7,758,809,332 people on Earth. Babies and toddlers probably don’t have an account. (And I do mean “probably” because some people make a profile for their newborns.) Most people from our grandparents’ generation probably don’t have one either.
But Baby Boomers, millennials, and Gen Z are all on Facebook and they’re the most targeted demographic by marketers.
12. A staggering 68% of Americans used Facebook in 2019.
That’s more than two-thirds of America’s population. You have a huge audience to reach and engage.
It’s no wonder marketers rely on Facebook to such a ridiculous degree.
Still, despite that Facebook is losing users on a global scale, the percentage has increased in 2020.
Today, about 71% of all Americans use the platform.
13. 54% of marketers consider Facebook the top platform for B2B marketing.
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 2020, however, show us Facebook is leading in this race too.
But isn’t Facebook more of an intimate and personal platform than LinkedIn?
That makes it perfect for B2C marketing too.
14. 98% of B2C businesses are on Facebook.
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.
15. Over 90 million small businesses have Facebook pages.
(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.
16. Facebook received $55 billion from ad revenue in 2018.
Money, money, money,
Must be funny
In the Facebook world
Shall we specify the definition of ‘ad revenue’?
Ad revenue is the income apps and social media platforms generate through advertising.
As we can see, Facebook has been generating quite the numbers throughout the years.
17. Facebook advertising revenue reached $16.6 billion in Q4 of 2018.
That’s quite the impressive number for only three months… especially given Facebook’s privacy issues. Let’s not look under that rock right now, though.
Still, the surprises in those Facebook ad revenue statistics are just starting.
18. 98% of all of Facebook’s revenue comes from ads.
(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.
19. 74% of the call-to-action buttons say “Shop now.”
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 2018.
20. The number of ad impressions has grown by 21%.
Impressions are the times the ad has been viewed.
The aforementioned increase is all thanks to newsfeed ads and call-to-action buttons.
Do users engage with ads at all?
21. The average user clicks on 8 ads every month.
This varies according to demographics. For example, men click on ads 7 times a month. Women, on the other hand, are more inclined to shop, so they click on approximately 10 ads for the same period.
Your success depends on targeting the right audience.
That happens to be one of the features of paid ads.
22. 24.2% of marketers are using paid ads.
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?
23. Small businesses tend to spend between $500 to $1,500 a month for Facebook ads.
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.
24. Facebook ad revenue statistics show that Facebook’s average ad cost for CPC (cost-per-click) is between $0.45 to $3.77.
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.
25. The average CPC in all countries was $1.72 in 2019.
(Source: Oberlo, WordStream)
The Czech Republic came first with $2.09. It was followed by the US Virgin Islands, with average CPC $1.33. The lowest average CPC in 2017 was $0.75 – in Croatia, Cyprus, and Switzerland.
26. The cost per thousand impressions (a.k.a. CPM) was $7.77 for Q2 of 2019.
Sounds quite reasonable.
Now let’s discuss the different advertising opportunities that Facebook grants us.
Facebook Ad Types
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:
- Single image ads – they only include one image. The advertising objectives you can use with them are Brand Awareness, Engagement, Reach and Store Traffic.
- Carousel – this format includes up to 10 more images or videos and with personal links for each of them. They’re good for the Brand Awareness, Conversions, Reach, Store Traffic, and Traffic advertising objectives.
- Collection – here we have a cover image, followed by a few product images or videos. With this format, people can interact with the ad, go through more images, and get more information about your product and service. Here you can rely on Traffic, Conversion, Store Traffic, or Catalogue Sales.
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.
Fun Facebook Facts
There are so many fascinating facts about the tech giant, so we decided to share some of the most curious ones.
1. Why is Facebook blue?
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.
2. The “Like” button was actually referred to as the “Awesome” button at first.
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.
3. Because of Facebook, people have started using the word “friend” as a verb.
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.
4. Al Pacino was featured on the original Facebook home page.
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.
5. The most popular Facebook fan page is Cristiano Ronaldo’s.
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!
According to Facebook financial statistics, Facebook’s annual revenue is not fixed because the value changes yearly However, the most recent data from 2019 shows the annual revenue for the year to be $70.7 billion. For the previous year, 2018, it was $55.8 billion.
According to Facebook financial stats, the platform generates billions of dollars from advertising yearly, but the figure is not constant. The latest reports for 2019 show that Facebook ad revenue for the year was $69.655 billion, accounting for 98.5% of the entire Facebook’s revenue for 2019.
Mark Zuckerberg, the founder of Facebook, and its CEO, currently earns $1 per year as his base salary. This has been the case since 2013 when the CEO requested that the board drop his $500,000 base salary per year so that other employees can get bonuses and paid their proper wages.
Anyone can advertise on Facebook, as long as you have a product or service to sell and a Facebook account. Currently, in 2020, according to Facebook ad revenue statistics, more than 8 million advertisers are actively using the platform.