How facebook/meta makes money|Marketing strategy of Meta/Facebook

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Facebook is a social network that makes it easy for anyone to connect and share with family and friends online. Today Facebook is the world largest social network with more than 2 billion monthly users worldwide. the platform accounted for 60.68 of all social media site visits in the united states in 2020 and its revenue amounted to roughly 86 billion dollars up from 70.7 billion dollars in the previous fiscal year. But how does facebook make its billion dollars what are meta/Facebook streams of income?

First Facebook/Meta Stream of Income: Advertisement

Facebook currently makes 98.5 of its money from digital advertising mostly ads on facebook and instagram the company posted 84.2 billion dollars in advertising revenue in 2020. A growth of 20.8 during the year through facebook ads marketers pay for ads based on the number of impressions delivered or the number of actions such as clicks undertaken by users ads are displayed on facebook main social networking site as well as instagram messenger and other third-party affiliated websites or mobile applications. The main reason for the success of facebook advertising business model is that users share a large portion of their life on the platform and because of that the amount of time people spend on the so-called news feed is crucial to increase the profitability metrics of the company all the data that facebook collects allows advertisers to find their perfect audience by narrowing down their search to a niche group of people using facebook audience and interest targeting even though each click may not cost that much it quickly adds up to billions of clicks and billions of dollars on the marketer side having access to such powerful advertising tools is very valuable for small to medium-sized businesses which are now able to compete with big companies without having large advertising departments .According to facebook there are now 10 million businesses globally that use their advertising platform same as with the facebook platform the company also makes money from ads on instagram.

Facebook doesn’t have a lot of ads on whatsapp or facebook messenger yet so those platforms don’t contribute much revenue at the moment the ads and the old news feed on facebook and instagram make the most money but ads in the disappearing stories are also becoming much more popular and making more money each year. Interestingly most of facebook revenue now comes from ads on their mobile apps in 2012 facebook launched its mobile ads program which up until then didn’t feature ads the strategy ultimately proved successful and was a big change from the company early days when most of the revenue came from the Facebook official website. Another major improvement happened in march 2014 when the company introduced its three-level advertising campaign structure offering campaigns and ad sets on top of standard ads which was designed to make it easier for advertisers of every size to organize optimize and measure their ads however facebook has been recently rolling out some privacy tools that allow users to prevent some of their data from being used for targeted ads these privacy tools may become a headwind for revenue growth in the future which could make targeted ads less effective and less popular with advertisers the company known advertising related revenues amounted to 1.8 billion dollars in 2020.

How facebook makes money

Second Facebook/Meta Stream of Income: Hardware

Two of facebook hardware products are part of this category oculus it virtual reality headset and facebook portal its video calling smart device. In march 2014 facebook decided to invest in VR by buying oculus for 2 billion which helped to boost consumer awareness of the brand. Zuckerberg is a big believer in the future of digital connection through AR and VR areas where facebook has been investing big oculus has partnerships with major technology companies including microsoft and samsung which places the oculus products in the spotlight of the technology industry. Its current products include the oculus rift headset for pcs as well as oculus go and oculus quest standalone headsets that contain integrated mobile computing hardware and do not require a pc to operate all virtual reality headsets sold worldwide in the fourth quarter of 2020 the oculus quest 2 led the way with more than one million of the vr headsets being sold additionally the company has confirmed that there are over 60 oculus quest games generating more than one million dollars in revenue with six games making over 10 million dollars in revenue but oculus didn’t single out those six games or provide specifics. Yet as i mentioned earlier facebook other hardware product is its facebook portal a smart display developed in 2018 the product line consists of four models that provide video chat via facebook messenger and whatsapp the devices have a screen and video camera that can follow you as you walk around the room while video chatting with a friend or family member.They’re also integrated with amazon voice controlled intelligent personal assistant service alexa but facebook did’t disclose how much money they make from the portal yet.

Third Facebook/Meta Stream of Income: Enterprise Software

Facebook offers a service called workplace which is a way for businesses to manage their internal communications the service was launched in 2016 and it counts companies .Such as spotify and starbucks amongst its clients it competes directly with business communication services like slack and microsoft teams which have respectively 12 million and 145 million daily active users. workplace has a free subscription option but its advanced service costs four dollars per month for each user and eight dollars per month for enterprises there are over thirty thousand businesses and organizations globally that use workplace which today has over seven million paid subscribers.

How Facebook/meta will Make money in Future?

facebook marketplace the craigslist like service where users buy and sell with each other now has one billion users facebook doesn’t charge list fees or take a cut of commissions so for brands approved to list products marketplace is essentially a free organic distribution channel. The platform is growing and has a lot of potential this means that facebook may take advantage of that one day facebook also sees a big market opportunity in digital payments and they recently started rolling out a new service called facebook pay.

Facebook/ Meta is also developing a cryptocurrency called “libra” which has the potential to disrupt the global payment space in the future and that why payments may become a significant revenue source for facebook. One of facebook biggest growth areas is e-commerce with facebook shops and instagram checkout the company is investing heavily in online shopping sees a big opportunity here because people already use their services to discover new products and shop and the number of business profiles is increasing another future monetization opportunity for facebook. Facebook is business messaging on whatsapp on facebook messenger many businesses are already using these messaging platforms to communicate with customers many websites now have facebook messenger chat widgets that customers can use to send messages directly to sales or customer support and for that reason the company is likely to find ways to monetize these features in the future. what do you think about facebook what would be the next move for them to become more profitable? Let me know in Comments.

FAQs Related to Facebook

What is Facebook/meta?

Facebook is a social network that makes it easy for anyone to connect and share with family and friends online. Today Facebook is the world largest social network with more than 2 billion monthly users worldwide. the platform accounted for 60.68 of all social media site visits in the united states in 2020 and its revenue amounted to roughly 86 billion dollars up from 70.7 billion dollars in the previous fiscal year. But how does facebook make its billion dollars.

Facebook Earnings from Ads

Facebook currently makes 98.5 of its money from digital advertising mostly ads on facebook and instagram the company posted 84.2 billion dollars in advertising revenue in 2020.

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