How Does Facebook Make Money?

How Does Facebook Make Money?

Facebook basically earn money by selling spaces for advertisement on different media places. This may include websites and applications that enable users to connect with other people.

The company owns the website and application includes social website Facebook, photo and video sharing app Instagram the chat applications Messenger and WhatsApp. Facebook also provide a system that allow users to connect through its Oculus virtual reality (VR) products.

Facebook have competition with other companies that sell advertising spaces in to the market. It also competes with the companies that allow user to share content. The most famous of them are Apple, YouTube, Tencent Music Entertainment Group and Amazon.

The important news – Facebook

  • Facebook is selling ads on the social media websites and mobile application.
  • Sale of Ad Spaces are the primary source of income for Facebook.
  • Facebook is doing investment on the upcoming technology like, Artificial Intelligence (AI) and also bit coin and augmented reality.
  • Facebook’s cryptocurrency is facing heavy retaliation from central banks and other authorities from all over the world.

How does Facebook make money??

As we know that Facebook have million of users and the ways from which Facebook earns money are also different. Facebook not actually earn money on the content or on the base of user. Facebook earn a good revenue on the base of online advertising. By these advertisements company earns its 85% revenue from the ads that is about $39.9 billions.

Types of Ads from which Facebook earns

The are different types of adds that are categorized by Facebook its types are

  • Self Serve Ads : these types of ads are commonly used on Facebook. It allows that anyone can put an Ad on Facebook anytime.These Ads appears on the right side also known as side bar.
  • Targeted Ads : Facebook Allows a user to use the option of targeted Ads. In this category user can target the audience according to its own choice. This may be according to the area and community you want to reach.Facebook allows companies to give space about to reach the preferences you want .
  • Facebook Messenger Ads : The application owned by Facebook known as Messenger also allow the advertisers to advertise their products and services. It has also a very huge audience more than 2 billion users. Facebook is also working to expand the messaging marketing and also purchased the WhatsApp to promote this advertising method

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