Here Is How Exactly Facebook Makes Money

If you have ever wondered how facebook makes money, then you are not alone. There are many people who have no idea how this social media platform generate money over the years. The facebook itself is free, isn’t it? Then how does it make money? Hence, in order to help you out with this unfinished question in mind, here is some explanations on how facebook makes money. After you have read this, you will get a hint on what stream and channels facebook generate their money. So, take a look.

The one and only money stream that facebook use to generate its business is through advertising sector. That is the exact answer for our question. Hence, the rumor saying that one day we are going to pay for using facebook is not true. In fact, facebook has been generating more than enough money from the advertising business. The explanation then will be broken down into who pays for the advetising. The first actor who pays for advertising on facebook is the self-serve advertising. This is the biggest source of facebook revenue. This is getting bigger and bigger since facebook has been implementing its new tools at targetting the desired audience and the clients want their advertising to tell based on some basic information, such as gender, network, relations status, or even age.

The next party who pays for the advertising to the facebook is people using the service from facebook gift shop. Some of you might not have been aware of this feature, but you can actually send each other gift from facebook gift shop. It cost one dollar for one gift. Surprisingly, this is also a good source of revenue for facebook. In 2014, it generates more than 100 million for facebook industry. Microsoft advertising is also another party which pays facebook for its service. Hence, in fact, there are many channels and ways that makes facebook able to generate money for its business. Even though the advertising business is the single source of revenue, but this is a huge business for facebook service. In turn, the argument saying that facebook cannot generate money because no user has to pay for making an account is completely wrong. As a matter of fact, facebook is a social media platform which gathers thousands of people around the world for its main business, which is advertising. Hopefully, now you have a complete understanding on how facebook makes money for its business.

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1 Comment on "Here Is How Exactly Facebook Makes Money"

  1. I always used to wonder from where does Mark get all the money to run facebook with so many employees and users the cost would be very high. Facebook is listed on the exchange and the stock is doing good so I was under the impression it was mainly from investors. I never realized it was ADVERTISING as i have AD BLOCK from the time i got my laptop! :))))

    Thank you for this article, Now i am curious about how twitter gets their money? Pretty sure there are no ads on twitter. Maybe you can do an article on twitter next !

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