HOW FACEBOOK MAKE MONEY ?? REVENUE MODEL FOR STARTUPS 2019





Facebook is a social media giant, with 2.23 billion active users working with family and friends on Facebook, (FB - Get Report) and 400 new users signing up to use the site every minute.

With such activity, it is not surprising that Facebook has a market capitalization of $ 450 billion and that its stock price is trading at around $ 155.

By being able to raise funds from multiple sources, Facebook has established a strong foothold on Wall Street as a financial giant, and its expansion in new directions should increase its results.

  Instagram's photo sharing app, purchased in 2012 for $ 1 billion, was bought by 400 million users and is expected to be a key Facebook component in the burgeoning digital photo market.
  
 WhatsApp is a very popular instant messaging platform that advertisers like to decipher, because it is widely used not only in the United States. UU. UU. , But all over the world. Facebook is increasing a new business model that charges advertisers a fixed price for interacting with WhatsApp customers.

Instead, it generates billions through digital advertising, because Facebook has something companies really want: reach the billions of people around the world who can buy their products or services. In fact, many companies on Facebook announced that in 2017, Facebook earned $ 39.9 billion in advertising revenue. In general, the company earns about 85% of advertising money.

What ad formats does Facebook use to make money? Here is a list:
1. Self-service advertising

This type of ad is widely used on Facebook: self-service ads allow anyone to create an ad and post it on Facebook. Self-service ads appear on the left (or "sidebar") on Facebook pages, for individuals, groups, user profiles, events, and third-party pages. The Facebook Ad Manager page helps advertisers create their own ads, offering accurate targeting tools to ensure that the ad reaches the desired audience.
2. Targeted ads

You have a large amount of personal data in your user base, including sex, age, hobbies, political preferences, shopping preferences, and even your favorite baseball team. This allows Facebook to sell advertising space to companies and organizations that want to focus on a specific demographic, such as video game players or Range Rover owners. Or, in general, advertisers can target larger groups of people based on their political preferences, religion, or even age. Advertisers can use certain tools like dynamic Facebook ads to market their entire product inventory to users with different income levels, to increase their selling opportunities. Targeted ads are an important revenue source for Facebook, and it's all due to the data the company collects in its user base.

4. Video ads

Traditionally, Facebook Live has flourished as a digital tool that allows Facebook users to communicate via video, allowing grandparents to register with their grandchildren thousands of miles away or reconnect with old friends from the university online to share your daily stories on campus. Increasingly, Facebook sees video as an effective way to connect advertisers to Facebook users via Facebook Live. Facebook Live streams are increasing, and Facebook benefits from creating video ads on the popular video platform.
5. Facebook Mobile

In 2016, Facebook's flagship mobile app generated 83% of Facebook's advertising revenue, making the mobile phone the largest digital tool to make money. As Facebook continues to explore new advertising platforms, expect Facebook mobile devices to carry the burden of corporate revenue, with mobile ads growing at double-digit growth annually.

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