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Deloitte study claims Facebook had economic impact of $4 bn in India

A new report by Deloitte, titled Facebook’s
Global Economic Impact
, analyzes how Facebook’s marketing, platform, and
connectivity effects have facilitated growth and jobs around the world.
Commissioned by Facebook, the study estimates that the company, with an
approximately $8 billion cost base, enabled global economic impact of $227
billion and 4.5 million jobs around the world in 2014.

A new report by Deloitte, titled Facebook’s
Global Economic Impact
, analyzes how Facebook’s marketing, platform, and
connectivity effects have facilitated growth and jobs around the world.
Commissioned by Facebook, the study estimates that the company, with an
approximately $8 billion cost base, enabled global economic impact of $227
billion and 4.5 million jobs around the world in 2014.

More specifically, Deloitte’s report looks at how Facebook
stimulates economic impact by providing 1) tools for marketers; 2) a platform
for app developers; and 3) demand for connectivity, meaning data usage and
mobile devices. The study is an update to Deloitte’s 2011 European report on
the subject and now includes an analysis of other regions and countries.

Jolyon Barker, Deloitte’s Global Managing Director,
Technology, Media & Telecommunications, says of the report, “Our study
finds that Facebook enables significant global economic activity by helping to
unlock new opportunities through connecting people and businesses, lowering barriers
to marketing, and stimulating innovation.”

“Across the world there is a greater urgency about creating
jobs,” says Facebook’s Chief Operating Officer, Sheryl Sandberg. “The good news
is that the tech industry is powering the economy and creating jobs within and
beyond its own campuses. Every day, businesses of all sizes, sectors, and skill
sets are using the Facebook platform to grow and expand.”

Here are some highlights from the report:

  1. The United States is estimated to capture the
    largest share of economic impact enabled, $100bn;
  2. High rates of engagement enabled $21bn of
    economic impact in Central and South America;
  3. The thriving app economy in EMEA has helped to
    generate $13bn of economic impact for the region through the platform effects;
    and
  4. In APAC internet uptake and purchases of devices
    motivated by Facebook have contributed to $13bn of economic impact.

The report had three broad categories to measure Facebook
effect across macro-regions, including India.

The report tallies up Facebook’s impact on India, it is
estimated $4 billion and 335,000 jobs have been benefited. With over 112
million users, India is the second largest market for Facebook.

Marketing effects: The economic impact of Facebook for
business that use it as a marketing platform to connect with consumers and
build brand value. The report considers three sources of effects for this
impact: Pages, Targeted advertising and referrals. The report estimated the
marketing effect category generating 1, 29,000 jobs with an impact of $1.4
bilion in India’s economy.

Platform effects: The impact in developer app economy
derived from third party products and services built on top of Facebook
platform. The app economy creates impact through revenues enabled by the Facebook
platform, in addition to traffic from social plug-ins. The report indicates
40,000 jobs have been impacted in India with economic value of half a billion
dollar.

Connectivity effects: The impact created through the sale of
mobile devices and internet connectivity. Facebook has developed partnerships
with local operators and optimized its product for lower speed and smaller data
packages. Interent.org  app allows people
to browse health, education and other information services. The report
estimates about 165,000 indirect jobs were generated and had an impact of $2.1
billion.

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