Meta Platforms, the parent of Facebook, released a report ahead of National Small Business Week that shows its advertising and community tools helped generate $58.9 billion in economic activity and support 441,000 jobs in California in 2022.
According to the report, every dollar of advertising on Facebook and Instagram generates $3.31 in new business, and via a multiplier effect creates a further two-and-a-half-times the economic impact.
“In the state data that we’ve seen, California is on the higher end,” said Diana Doukas, public policy manager for economic opportunity at Meta.
She said 60% of small businesses in California are using Facebook and Instagram to connect with their communities and build their businesses, with 37% reporting a sales increase in 2022.
“Our platforms are really there to help connect community, to build community,” Doukas said.
These businesses are also using Facebooks’ targeted advertising, which she said allows them to “spend their very limited marketing dollars in a very efficient way.”
Meta, Google and other California-based “big tech” companies have faced criticism in recent years over their size and influence, but Doukas said the state’s businesses benefit because they can do so much for free or at very low cost.
She said Meta’s tools help lower the barriers to entry for new businesses, promoting competition and economic growth.
“This kind of economic activity really just underscores how we hope to continue to be part of the California economy,” she said.