2Q EARNINGS: Facebook Tops 1.5M Active Advertisers

By David Cohen 

SherylSandberg650Chief Operating Officer Sheryl Sandberg announced during Facebook’s second-quarter earnings call Wednesday that the social network now has more than 1.5 million active advertisers, as well as more than 30 million active small and midsized businesses, with 19 million of those active on mobile.

Sandberg used Chumbak, a company based in India, as an example during her opening remarks Wednesday, saying:

Just a few weeks ago, I was in India, and I hosted our first India SMB roundtable. One of the entrepreneurs I met, Vivek Prabhakar, built his house just a few years ago to raise the money to start his and his wife’s dream business, Chumbak, a company that makes India Inspired products. Facebook is Chumbak’s leading marketing channel, and it is responsible for 35 percent of online revenue and 38 percent of its website traffic. Its Facebook ads deliver a five times return on advertising spend, and this has helped company grow to more than 150 employees in three offices.

We have more than 30 million active small business pages, and over 19 million of these are active on mobile. We think we have a big opportunity to help SMBs like Chumbak grow their businesses, and I’m pleased to announce today that we have over 1.5 million active advertisers. We’re also ramping up our engagement with this community. In the U.S., we’re hosting Facebook Fit workshops in cities like New York, Chicago and Miami to help small businesses. And we’re doing this globally, including forming our first European SMB cap.

Sandberg didn’t limit her comments to SMBs, addressing larger advertisers later in her remarks:

We’re also making great strides in our work with our larger brands to increasingly recognize how our scale, targeting and measurement capabilities can drive great results. For example, Procter & Gamble and Gillette worked with us and agencies IVS and MediaCom to launch its Vector III razor to men in India. 80 percent of the 100 million Facebook users in India are on mobile, and a majority of these are using feature phones. This was our first feature-phone-only Facebook campaign. It reached 60 percent of Gillette’s target audience and generated significant lift in both message and ad recall.

We also remain committed to investing in product development to drive higher returns for all of our marketers. Our custom audiences capabilities, which enable better targeting, are been adopted quickly and are now being used by 91 of the Ad Age 100. Earlier this year, we launched website custom audiences, which enabled marketers to target recent visitors to their websites. This is like targeting, but it’s even more effective because it works across both Web and mobile. We’re pleased with the early reaction from marketers.

Readers: What do you think of Facebook’s progress on the advertising front thus far in 2014?