How Instagram And Facebook Make Money

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Every day more than 2 billion people use Facebook, Instagram, Whatsapp or Messenger. That’s more than a quarter of the world’s population. And despite a rising number of privacy scandals and public backlash, Facebook is still growing. Total revenue for 2018 was fifty five point eight billion dollars, up 37% from 2017. But with all of those users paying nothing to use these apps, how does Facebook make money? Is the company selling your personal information to companies politicians and even foreign governments? It’s actually much simpler than that.

Throughout its entire history Facebook has relied on advertising for revenue here and there. The company has experimented with other types of revenue such as hardware with its Oculus VR headsets and its new portal speakers. But really all of that is chump change compared to the revenue that it generates from advertising. About 99 percent of Facebook’s revenue came from advertising in 2018. There are about 7 million advertisers on Facebook and the ads that you see aren’t like a traditional TV commercial or newspaper ad that looks the same to everyone.

Source: CNBC Channel on Youtube

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