This is a clueless question on everyone’s lips about the largest social media platform, Facebook.
Facebook came to light twelve (12) years ago under the astuteness and shrewdness of Mark Zuckerberg; since its release to the air, it has been growing overwhelmingly and touching people’s life in one way or the other. Now everyone uses Facebook, they connect and interact but does Facebook aim stops at this?
What’s the need for its growth?
How has it been monetized?
It is imperative you know the answer to these questions as a registered user of Facebook
Facebook, we know, is a social media platform to connect and interact but to some shrewd individuals, it is a gold mine where they amass wealth to feather their nest.
Incase you do not know, the chairman and CEO of Facebook, Mark Zuckerberg worth $54.2 billion and his primary source of income is Facebook. There are over 1.79 billon active users on Facebook monthly with an average of 640,000,000 minutes spent on Facebook monthly.
These data are used by Facebook, a giant social media, to strategize and monetize. I shall unfold the source of Facebook revenue in subsequent paragraphs.
Advertising is the most prominent source of revenue for Facebook; it is the lion’s share of the 12 years old social media giant’s source of revenue.
Nowadays, top brands hanker for widest publicity for their products, irrespective of the source of awareness and audience.
Facebook is undoubtedly a huge source of audience where any product or service can get the widest publicity it deserves, however, it comes with price. Even though Facebook didn’t pay for the crowd but it’s creatively paying the crowd. This huge Facebook record and statistic is what attract investors to place there product or service on Facebook platform, thus, paying the price.
The prudence of Facebook team also contributes greatly to its reputation in the realm of advertising; Facebook has different kinds of advertising package with fascinating features to call the attention of a potential investor. Facebook has different mode of advertisement with relevant advertising aids features designed to suit advertisers. They are:
- Self-Serve Facebook Advertising
This is the largest source of Facebook advertising revenue, this gives any product or service the widest publicity and it comes with a huge price as well.
This advertising package allows the intended product or service to be displayed on the side bar of most Facebook pages; such advert includes: user profile, events, groups, Facebook pages, third-party applications and other products.
What makes this package outstanding is the target audience feature; the allows advertisers select the criteria of audience the product or service reaches. This is made easy by restricting adverts to advertiser’s preferred location, gender, age etc.
As part of the initiative to attract more advertiser, Facebook launched the Facebook Ads API; this allows advertisers build a stalwart ads managers on the Facebook advertising platform. Also, it reduces the amount of the friction large advertisers have in posting new adverts and modifying existing ones.
- Engagement ads
Engagement ads are Facebook’s solutions for large brand advertisers; they are always available at the site homepage to welcome visitors. Once users access their account, they can interact with advertisements placed on the side bar of the homepage.
Part of Facebook efforts to increase the numbers of their clients and advertisers, is the release of the Brand lift in September, 2009. Brand lift is a package designed to enable large brands test the efficacy of their advertising campaign in a short time after the campaign is put on air. This development appeases advertisers as they are able to view and monitor the service they paid for, thus, encouraging advertisers to spend more money on the program.
Another stream of income for Facebook is the Virtual Goods and Gifts shop they operate on the platform. Owing to the humongous users of this platform, the management decided to provide an avenue where people can share gifts among themselves to celebrate love and other achievements.
This shop enables users to send virtual gifts to one another at an average cost of $1 per gift. Facebook gifts shop is a laudable initiative that fetches Facebook millions of dollars annually; the gifts shop is now open to third-party developers in order to increase the varieties of good sold in the shop.
Facebook credit is another means Facebook earn money. Facebook also generates income through Facebook credit program.
This used to be a way for Facebook shop users to purchase virtual goods on the Facebook gifts shop; it is now open to third party developers, the aim is to allow the developers integrate the Facebook credit program directly into their applications.
Facebook takes the lion’s share of all the virtual goods sold through the application, as the engender of the initiative.
With top brands like: Fords, HSBC, Mc Donald, Samsung, Dell; on Facebook advertisement platform, Facebook will always be at the top of game.
They sprout up innovative initiatives on a daily basis to captivate investors into their advertising program.
This will always make Facebook stay above the board and continue to stay afloat.