Ever wondered how Facebook makes money?

We all know that Facebook was created in 2004 by Mark Zuckerberg along with his roommates at Harvard University. Facebook is one of the biggest companies in the world. Zuckerberg is the youngest billionaire to reach the top 10 wealthiest people in the world. Mark Zuckerberg makes between 6 and 12 million dollars per day, which results in an estimated yearly earning of more than 3 billion dollars.

But what we don't know is how Facebook earns money.


Facebook is a social media giant, with 2.23 billion active users engaged with family and friends on Facebook. This means that Facebook reaches about 3/4 of the world’s internet population. Because of its massive user base, the company makes a lot of money from serving ads.


Facebook Inc. (FB) primarily makes money by selling advertising sales on its various social media platforms like Facebook, Instagram, and Messenger and WhatsApp. Marketers pay for ads based on the number of impressions delivered or the number of actions, such as clicks undertaken by users.

Facebook is estimated to earn 85% of its total revenues from advertising, but ads aren't the only source of income for the social media company.


  • Facebook sees a big market opportunity in digital payments and they recently started rolling out a new service called Facebook Pay.

  • Jibbigo is a language translation app, acquired by Facebook in 2013, allows Facebook posts and chats to be translated into multiple languages. The ability for companies to advertise their products in several languages would be a huge attraction in both a digital and global economy.

  • Onavo is mobile utility application aids data performance on mobile devices, and allows companies to track their app's performance against other apps in the same business category.

  • Atlas Solutions is a app purchased by Facebook in 2013 from Microsoft, (MSFT) - Get Report Atlas enables advertisers to effectively monitor their social media outreach programs.

  • One of the biggest growth areas online is eCommerce. The Facebook Marketplace platform already has hundreds of millions of users. Many brands and influencers also rely heavily on Instagram to market their products.

  • Additionally, Facebook makes money from hardware products. They own the virtual reality headset maker Oculus and sell the Facebook Portal.

  • Instagram, purchased in 2012 for $1 billion, this photo-sharing app boasts 400 million users and is expected to be a huge keystone for Facebook in the developing photo app digital marketplace.

  • WhatsApp, Facebook purchased WhatsApp for $19 billion in 2014, making it the largest acquisition the company has made in recent years. WhatsApp is a wildly popular instant messaging platform and Facebook is ramping up a new business model that would charge advertisers a fixed price for engaging with WhatsApp customers.

  • Another future monetization opportunity for Facebook is business messaging on WhatsApp and Facebook Messenger.

Hope you find this article informative. Thank you for reading my article thoroughly. Don't forget to hit the like button and feel free to express your opinion in the comments. Have a great day ahead.

55 views0 comments

Recent Posts

See All