Why Small Business Means Big Business for Facebook Inc.

By Tim Brugger | Commentary by Kelley Swanson

Commentary:

Social Media is an important marketing tool for small businesses. In these modern times, almost everyone, even grandma, is online. By using facebook, twitter, and other online media outlets, businesses can advertise their services and products instantly and for free. Below is an article The Motley Fool discussing how Facebook and businesses owners are using synergy to create mutually profitable opportunities.

Article Excerpt

If the expectations of America's small business owners come to fruition, 2015 and beyond could be a boon for Facebook (NASDAQ: FB ) , and even its wannabe social media kinTwitter (NYSE: TWTR ) .

Followers of Facebook may recall last year's "Facebook Fit" nationwide series of boot camps for small business owners. The objective of the Fit seminars was to encourage small business owners to use Facebook as a primary marketing tool, as well as to demonstrate how to best carry out a social media advertising campaign. New data suggest that the timing of Facebook's -- and to a lesser extent, Twitter's -- focus on small business couldn't have been better.

Bring on 2015

The National Small Business Association, or NSBA, recently conducted its annual survey of small business owners around the country. Only 45% of small business owners reported an increase in revenue over the previous 12 months, while 34% reported a decline. Not exactly a banner year.

However, respondents were clearly feeling mighty good about their prospects in 2015. According to the NSBA, in the coming 12 months a whopping 60% of small business owners expect an increase in revenue, and just 15% are bracing for a decline. Should that come to pass -- and who knows a business better than the owner -- that would be a significant about-face.

The news could be even better for Facebook investors. A similar survey of U.S. small business owners conducted by the Alternative Board was even more upbeat, citing a staggering 82% of respondents who anticipate increasing revenue in the coming year.

And what will fuel all that growth? Over half of the country's small business owners intend to utilize ads and marketing as the primary catalyst.

Small, but mighty Facebook's recent announcement that it now boasts more than 2 million "active" advertisers, up from 1.5 million less than a year ago, might have slipped under some investors' radar, but it's certainly newsworthy. By "active," Facebook means the business had posted an ad within the past 28 days. What's the secret to Facebook's impressive growth in marketing partners, and why should investors care?