How Does Facebook Make Money?

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stacks of dollars

Have you ever thought of that? You get to create an account and use Facebook for free, so how can Facebook make money? They have to pay for their employees, servers, buildings, app programmers and more. You also hear about Mark Zuckerberg making lots of money, so how do they do it?

Basically, it’s ads – advertisements.

As you scroll through your news feed, you’ll see ads for companies and products. Those companies pay to put those ads there. They’re paying for that space.

When you say you like things – people, places, websites, hobbies, musicians… whatever, you’re building a profile. Advertisers can then buy ads that reach people with the profile you set… all the things you “like” on Facebook.

And when you go to websites that have a Facebook tracking pixel on them, those websites (companies) can post ads to people that have been to their websites. That is why you’ll start to see ads for websites you’ve been to.

Some of the biggest spenders of Facebook ads are:

  • Ford
  • McDonald’s
  • Visa
  • Budweiser
  • Starbucks
  • Nike
  • Chase
  • Samsung
  • Verizon
  • Walmart

Facebook makes money from these companies buying advertisements on Facebook. Their targeting (who sees the ads) is very good and precise, so these companies are smart to advertise on Facebook.

And Facebook makes money because of content. That content is things you, your friends and your family post. People check Facebook to check that content and how many likes their content has. There’s always new content and that brings you back. The more you view Facebook, the more ads Facebook can sell.

What do you think of that? Is it fair? (leave comments below)


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