How Facebook Earn Money? | FB Business Model
FACEBOOK BUSINESS MODEL AND STRATEGY
How Facebook Earn Money?Hello friends, Facebook is the world's largest social networking website with more than 2 billion monthly traffic. Many users use it for Photo, Video and Messaging, and many people use Facebook to earn moneyThe Facebook website and mobile app are absolutely free and we do not have to pay any registration or monthly charge. So, in your mind this question may come from, how does Facebook earn money? or How Facebook Makes Money? And what is the FB business model?
Whether business is offline or online, paid or free, their management has a method that helps them earn money. If you earn money through a business service, then by selling a product - such as Bollywood Movies business model , SEO services business model .
Similarly, Facebook has its own business model, which makes it money. We will get an overview about this here on how Facebook generates revenue.
FB BUSINESS MODEL
To make any business successful, its business or revenue model has a very important role, whether it be a small organization or a large enterprise like Facebook - everyone needs a money management model to run the business properly.
Facebook is not alone, it has many sub-organizations with an important part of the FB Business model. for example…
- Facebook Payments Inc.
- WhatsApp : Instant Messaging Client
- Instagram : Photo and Video Sharing
- Atlas : ad-serving and measurement platform
- Onavo : Mobile utility application.
- Parse : back end infrastructure for mobile applications
- Moves : tracking application
- Oculus : VR technology
- LiveRail : The Publisher Monetization Platform, which we also know as the audience network.
- Masquerade : Visual Filters mobile application
There is a lot of part of the business model design , but we are talking about its core FB business model here (where Facebook earns money), which is also called the Facebook revenue model .
Facebook earns money by using only the advertising business process and neither does it sell the product FB nor any service Let's understand this with a bit detail.
Facebook Advertising Business Process:
Whenever you open Facebook on your computer browser or on mobile, you may also see a post like friend's post, which you have never liked or followed. In such a post, most are connected to a business, product or service, and the word Sponsored is associated with it.
All such posts are paid, meaning that they are promoted on Facebook by paying money. It can be from photo, video, slide or even a given option.
The same advertising system is for Instagram . In the online advertising life cycle process , there are many different steps and they have their own role. But we can divide it into 3 steps in general.
- Phase 1 (Source / Advertiser)
- Phase 2 (Medium / Facebook)
- Phase 3 (Destination / Users)
Phase 1 (Source / Advertiser) - People who find their ad on Facebook platform are called advertisers. It can be an Individual and can also be a company / organization. Such as Flipkart , Hostinger , Xiaomi, Nike etc.
Phase 2 (Medium / Facebook) - The platform on which the advertiser advertises is called medium.Here is the Medium Facebook because we are talking about the FB business model.
Phase 3 (Destination / Users) - For advertisers who have ads, they are called destination. Ads on Facebook are used for users who have an FB account, so all its users are destination.
HOW FACEBOOK EARN MONEY?
False Facebook is spread all over the world, and there are countless users like it, just as many small advertisers are. In such a way, Facebook can not approach each and every company, organization or individual.
That's why Facebook has created a new platform named https://business.facebook.com/ 
Facebook is for business platform advertisers , who can use this platform to create an ad for their product, services or organization and access them to users.
In this case whenever an advertiser has to promote his product, services or business on Facebook, then he creates an advertisement by going to Facebook and selects a plan with it.
- Demographics
- Impression
- Clicks
- Location
According to that, according to the plan, the advertiser has to pay accordingly, then by going to Facebook, the user reaches the ad. In India, the Facebook minimum ad budget is 40 rupees and it happens with different minimum budget according to different countries.
Facebook earns an Arbau dollar every year from Advertising, and its revenue chart can be seen by itself.
Whenever a user clicks on the advertisement appearing on Facebook, Facebook receives money from it and there are some advertisements which are also found in the user's Facebook. Does not end with any advertiser's full budget.
The advertiser budget depends on his bidding strategy, in what way he pays by setting daily, CPC or Impression budget. In today's time Facebook has more than 6 million active advertisers who pay it daily arbo rupees and in this manner Facebook makes so much money.
Friends, in the FB business model , I have told about everything that needs to be the least about which should be the least information. This is just the business model of its business in which I have told how Facebook make money? If we go into Detail, then every phase has many sub-parts which control the entire business and money flow. If you have any suggestions or questions about it, then you must commen
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