Facebook had reported in the spring that 15 million small to midsize businesses had a company presence on its platform. Recently, however, the social media company decided to rethink its definition of what constitutes an SMB. It now uses three criteria to identify SMBs:
Under the new criteria, e-commerce businesses are included where the previous headcount included only those SMBs with concrete storefronts. Now, Facebook claims online accounts for 25 million SMBs.
Many wonder why the change makes any difference. However, the company also says 1 million of those accounts are actively advertising on the social media site. Since advertising is a huge chunk of the company’s revenue, it makes sense to count every business that could contribute to that bottom line.
We continue to hear feedback from small businesses and incorporate it, and we still have a lot of potential left.
Levy also believes that Facebook provides an integral and inexpensive marketing investment for SMBs—especially those looking to create a mobile presence. Having a business page on the social platform and advertising there as well provides visibility to smartphone and tablet users without having to create a mobile website.