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How does Facebook (Meta) Make Money

Facebook amongst all other social networking websites has become the most popular and has reached a wider range of audience all over the world.

This specific social networking website has got more than 2.85 billion active users. This particular strategy makes Facebook become an enormously robust and strong database.

Facebook Making Money Model

Have you ever wondered how Facebook (Meta) makes money? What is Facebook's business model? Besides offering free profiles to its members, Facebook is still able to make money by showing ads from advertisers within its Facebook news feed and stories feed and also in the Instagram app feed. It is not as complex as you imagine.

Facebook Makes Money With 3 Major Things:

Here is the Facebook business model for making money.

1. Revenue from Advertising

This is the major method used by Facebook to make money. Facebook has collected income in hundreds of millions from advertisers till now. You can see most of the advertisements on the right side of the Facebook page once you have logged in desktop. If you are a mobile phone user, you also see many advertisements when you scroll down to see your Facebook friends' posts.

Business organizations and companies market anything and everything on Facebook right from charity happenings to car insurance. Advertisers are very much keen on paying Facebook millions of dollars to advertise their products.

Wonder why? The main reason is that Meta can easily target accurate demographics that the advertisers are in need.

For instance, if a life insurance company wants to aim at customers who are 50 years older and more, or if a dentist clinic wants to have new customers within their close circle, say 10-15 miles of their specific city of existence, they both can easily find people to advertise about their product, brand, service on Facebook.

The companies can reach a wide range of targeted customers easily and they are also able to make more money because of Facebook ads.

2. Facebook Applications

You should have heard a lot about a game known as FarmVille on Facebook. It is said to have more than 10 million players from various parts of the world. These applications are made by other business organizations and companies. For instance, FarmVille was created by a company called Zynga.

They have also created various other game applications such as Mafia Wars, Café World, and a lot more. They get the space from Facebook on a rent basis and so they pay Facebook for that purpose.

This is the second most important way that Facebook follows to make money. Since there are millions of players playing all these games, Facebook generates more amount of money by renting space to them.

3. Revenue from Gifts

This is another method followed by Facebook to earn money. You can use the application of the free gift on Facebook to send gifts to your friends on their Birthday, Wedding Anniversary, or for any other occasion. Do you know, how Twitter makes money?

It will actually cost you less when you send a gift through this method. However, it sums up to a bigger amount for Facebook when most of its users send gifts. Comparatively, this method is said to be one of the small ways used by Meta to earn money.

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