How Does Facebook Make Money?

James Orublig / Updated 17 July 2024 2:05 pm / 4 minute

Most social media platforms, such as Instagram, Twitter, or Snapchat, are entirely free for their users, and Facebook is also one of these free social media services. Remember, everything in business life needs to carry profit. However, when you sign up on Facebook, the site does not ask you to make a payment. Because of this, you may be wondering how Facebook makes money.

Contents

Before starting, you need to know Facebook has a huge database and has the most popular messaging app, Whatsapp. Both social media services are free. So, how is that possible?

Digital Advertising

Facebook makes money in more than one way, but the most significant part of its revenue comes from ads, as you guess. Traditional advertisement methods have been changed entirely by Facebook. The company works on the target audience. Suppose, when you want to promote your brand or business on Facebook, you need to make payment to Facebook. Remember, social media services has a huge database as it has been recording everything you have uploaded or written. Because of this, Facebook can reach any information about you, such as your interests, favorite places, and brands. Please remember; who owns Whatsapp? Bingo! Facebook also combines your Whatsapp information to access more information about you, according to some sources. So, Facebook brings products and services you can purchase to your Facebook timeline; when brands’ revenue increases, Facebook’s revenue will increase day by day.

The main source of the Facebook company revenue (almost %98) is advertisements. Most of the digital advertisements on the platform are provided by pay-per-click. At this point, one-click may not cost that much, but billions of clicks come together. Thus, we can say that billions of clicks mean billions of dollars.

Besides, each advertiser needs to decide what kind of people they want to reach and offer their ads. For instance, you are an advertiser and promote a luxury clothing brand like Chanel. Your target customers’ should be;

Gender: Woman

Age: Approximately between 20 and 40

Interests: Luxury clothes, bags, and shoes

Facebook Messenger: Facebook Messenger offers a great way for Facebook users to engage with each other. Besides, advertisers can promote their products and services on Messenger as its audience is huge, with almost two billion users.
Video Ads: Facebook Live is a digital tool that allows Facebook users to broadcast a live feed. Besides, Facebook Watch is one of the most commonly used Facebook parts, with more than 150 million people per day. Thus, advertisers can reach more people via both Facebook Lives and Facebook Watch services.
Facebook Mobile: Mobile advertising creates 83% of Facebook ad revenues.

Instafollowers · How Does Facebook Make Money?

How Much Money Does Facebook Make Per Day?

On average, Facebook makes money between 8 and 10 dollars from one user in one year. Facebook earned 17.7 billion dollars in the first quarter of 2021, and the average revenue per user is 6.95 dollars. We can say they make approximately 20 million dollars per day.

Facebook Making Money In Short

Facebook makes money in different ways; it sells advertisements on social media platforms and apps. Remember, the main source of the Facebook company revenue is advertisements. Facebook also uses Whatsapp to gain more and more information about its users, such as their interests, preferences, income, gender, age, geographical location, occupation, and education level. So, Facebook will be able to offer highly-personalized products and services ads for each user. When you download Facebook and Whatsapp, they will ask for ‘Agree and Continue.’ Therefore, when you click to confirm the icon, you will give Facebook and Whatsapp rights to access your information. Remember, Facebook doesn’t sell users’ data directly. On the other side, it uses those data to make money via advertisers. There is only one way to stop sharing your data; you need to give up using these social media services.

Frequently Asked Questions About

Does Facebook sell its users’ data?

Mark Zuckerberg said that they didn’t sell data to advertisers; it is a myth. We can say Facebook doesn’t sell its users’ information directly, but the company uses the data to make money from them.

Can you stop Facebook from sharing your data?

Unfortunately, you can’t. Remember, Facebook purchased Whatsapp in February 2014, and it combines these two services to reach more information about its users. Because of this, if you want to stop Facebook from sharing your data, there is only one way to do it; Neither Facebook nor Whatsapp shouldn’t be used.

Why is Facebook free for its users?

Because Facebook makes more money through brands, businesses, and other companies than through its users, thanks to their huge user database.

Can you make money on Facebook?

Yes, there are several ways to earn money on the platform. For example, you can sell goods and services or promote your brands through ads.

Is there a way to see what data Facebook has on you?

– Is there a way to see what data Facebook has on you? Yes, to check on your data, follow these steps;
– Log in to your account with your email address/phone number and password.
– Click on the arrow in the top-right of your screen.
– Choose the ‘Settings & Privacy’ button and then select the ‘Settings’ option.
– Click the ‘Your Facebook Information’ part.

You will see ‘Download a copy of your Facebook data.’ Click the tab, so you will be able to control what data Facebook is holding about you.

James Orublig

Posts: 539

Hi, my name is James but my friend calls me JamesTheNews since I always have the latest news about social media. Follow my blogs to learn every bit of trickery there is to social media.