Facebook 'enables €15.3bn in EU economic activity in 2011'

The impact of social media on business has been underlined by a new report showing that Facebook has enabled €15.3 billion of European economic activity in 2011.

Analysis from Deloitte shows that the social network supported 232,000 jobs across the EU and Switzerland last year, as companies have been able to use the site to promote their brand, raise awareness and generate new business.

Smaller companies have been shown to be particularly likely to benefit from the use of Facebook, as it essentially allows them to inherit a fully developed customer relations management system at no cost.

Meanwhile, the existence and benefits of the site is also increasing demand for compatible devices and broadband connections, thus driving €5.5 billion sales for technology sector.

Chris Williams, Deloitte's economic consulting partner, said: "Facebook embodies a new generation of social media organisations that have significant global impact and create economic value through enabling ecosystems of businesses to flourish."

This comes after Palo Alto Networks published a report showing that global companies increased their active use of social media by 300 per cent last year.