What is Facebook?

Facebook is the world’s largest social networking website with more than 2 billion monthly traffic. Many users use it for photos, video and messaging and many people use Facebook to earn money. Facebook website and mobile app are absolutely free, we do not have to pay any registration or monthly charge. So in such a situation, we do not have to pay anything to use Facebook, but it does not mean that they do not earn money.

whether a business is offline or online, paid or free, their management has a way to earn money. helps, Some earn money through business services and some by selling products. In the same way, Facebook also has its own business model, by which it earns money by using it. And more than 5 billion people have downloaded it.

Facebook Business Model.

In making any business successful, it’s business or revenue model has a very important role whether it is a small organization or a large enterprise like Facebook – all need a money management model to run the business properly. Facebook is not the only one, along with many of its sub-organizations, which is an important part of the Facebook business model and its revenue comes from there as well.

Sub organization

  • WhatsApp: Instant Messaging Client.
  • Instagram: Photo and video sharing.
  • Atlas: ad – serving and measurement platform.
  • Onavo: Mobile utility application.
  • Parse: back end infrastructure provider for mobile applications.
  • Moves: tracking application.
  • Oculus: VR technology.
  • LiveRail: Publisher Monetization Platform which we also know by the name of the audience network.
  • Masquerade: Visual Filters mobile application.

Facebook earns money by using only the advertising business process and neither does it sell any product nor any service. So now we understand it in a little detail.

Facebook Business Process.


Whenever you open Facebook on your computer browser or on mobile, you will see some posts that you have never liked or followed, along with a friend’s post. In such a post, most of the posts are related to a business, product or service and with this, the word sponsored is attached. All these posts are paid, that is, they are promoted on Facebook by paying money. This can be from photo, video, slide or any other given option.

Exactly the same advertising system is for Instagram. By the way, there are many different phases in the online advertising life cycle process and they have their own role. But to understand this, we can divide it generally into 3 phases.

  • Phase 1(Source / Advertiser)
  • Or Phase 2(Medium / Facebook)
  • Phase 3(Destination / Users)

Facebook Business Process.

  • Phase 1(Source / Advertiser): People who place their ads on the Facebook platform are called advertisers. It can be an individual or a company/organization.

For example

  1. Flipkart.
  2. Hostinger.
  3. Xiaomi.
  4. Nike.
  • Phase 2(Medium / Facebook): The platform on which the advertiser advertises is called medium. Medium Facebook here because we are talking about the FB business model. And people are advertising through him.
  • Phase 3(Destination / Users): Those for whom advertisers place advertisements are called destination. Because ads on Facebook are used for users who have an FB account, therefore all its users are the destination.

How does Facebook earn money?

Facebook is spread all over the world and it has countless users, in the same way, there are countless advertisers – big and small. In such a situation, Facebook cannot approach every company, organization or individual. For this reason Facebook has created a new platform named – https: / / business. Facebook. com / this is for platform advertisers,

Which can use this platform to create for their product, services or organization and can reach it to the users? In such a situation, whenever an advertiser has to promote his product, services or business on Facebook, he goes to Facebook and creates an Ad and selects a plan with him.

  1. Demographics.
  2. Impression.
  3. Clicks.


  • According to that plan, the advertiser has to pay, then Facebook goes to the ad and reaches the users. Facebook’s minimum ad budget in India is 40 rupees and it varies with different minimum budgets according to different countries. Facebook earns arbo dollars every year from advertising.
  • Whenever a user clicks on the ad appearing on Facebook, Facebook gets money from it and there are some such ads which if the user sees, then Facebook gets the money.
  • Depending on the advertiser his budget depends on his bidding strategy, how 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 money and this is the way Facebook earns so much money.

Note: So I have given you complete information about Facebook, so how did you like this article? If you like it, share it like Facebook Twitter, etc.



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