Facebook Business Model: How The Company Makes Money?

Everyone knows that one cannot top Facebook when it comes to pioneer social media platforms. Facebook is the one that has revolutionized and made social media a thing among the millennial generation. After Facebook, many other platforms rose to popularity. Also, in today’s’ economy, Facebook is one of the biggest social media firms globally with its presence reaching every corner of the globe. Therefore, one can say that it has a great business presence along with a strong online presence. But, when it comes to online platforms like these, a very legit question that hits the spectators is how they make money and buy fb account. Let’s learn a slight bit about Facebook’s business model.

Services provided

When it comes to Facebook, several services are provided, like:

  • Messenger: This is a real-time chatting platform.
  • Facebook: Facebook itself stands to be the most used social media platform.
  • Workplace: this platform is connecting enterprises through various features.
  • Audience network: This works as an advertising platform.
  • Games: Facebook games are another place that brings in millions of users every week.
  • Instagram: Facebook now owns this social media platform for posting the picture.
  • Whatsapp: Facebook also owns this messenger platform. 

Business model

Every business needs to have a business model, one on which it bases its strategies and plans. Now, Facebook, to have a business model that it works on. Mostly this model is a mix of various models together. But, it is mostly based on a hidden revenue business model. It is an advertising business model. They sell advertising which is bought by others to post ads and for which get their revenue. 

Their business model is based on advertising largely. And this advertising model works just fine, as Facebook provides a great platform for marketers and advertisers to promote their products and services. The company’s revenue is showing a major growth because of few factors:

  • Less advertising space and thus the cost of advertising are high.
  • Huge mobile advertising opportunity for brands to milk on.
  • This social media platform provides better engagement opportunities to the brands.

The average revenue per user

Another big topic that every company tends to consider at the end of the quarter is the ARPU. ARPU is the average revenue per user, which is how much money each user brings to the company. When a company is selling products, it will find the average money the consumers are spending. But here, as the business model is advertising-based, the revenue is based on how much time the user is active on the platform.  The majority of the revenue is from the USA and Canada, while the next is from Asia Pacific countries. The more the user is active on their timeline, the more will be their value. That is the sole reason why Facebook is ever trying to increase the active user base every year. One can also buy fb account from the platform.

Started in 2004, Facebook has shown major growth. And the reason is its modern business model that fits right with the social and internet crazy generation. In the future too, the company will cash in on this social media-friendly user base.