Facebook is one of most successful social media platform is the history of social media networking. With the Acquisition of Instagram in 2012 & Whatsapp in 2014. Facebook now has the Monopoly in the entire social media network all across the globe. Facebook has a total of 2.45 billion users in its platform Globally. According to Statista, Facebook has 290 Million registered users in India. India is one of the Facebook largest user base, Followed by USA with 190 Million Users. Indonesia has 140 million Facebook users and brazil has 130 Million. According to the Re-search, 80% of the internet users use both Facebook and Instagram.
Why Facebook is the best Platform To sell your Advertisement ?
Facebook has one the Largest user database in the world. It has the most information of its user whether its Personal Data or the the Individual interest. The more Data you have, The better you can target to your Audience. Hence, Facebook is one of the best platform to sell your Ads.
Facebook is one of the most cheapest platform to advertise.The Indian users can start the Daily budget of Rs70 Per day which in return gives quite a lot of good impression. With this mind Anyone can start advertising on Facebook. All you need is a facebook and Account with the setup of Facebook Business manager. It is very important to make sure your business has a Facebook page. You can advertise both on Facebook and Instagram simultaneously by linking your instagram business profile to your facebook page. Facebook also helps to measure your spend & Track of your ROI. Another huge plus point of Facebook Ads is the Re-Targeting. You can Re-targeted your ads to people who have visited your Website or App. Now, Lets talk about how Facebook actually makes money.
How Dose Facebook Make Money?
Facebook primarily makes money by selling Ads. Here, Selling refers to the number of impression each Ad makes for each user. Based on the goal set by the Advertiser the bidding money can be changed. The ads are shown on all Platforms owned by Facebook. Instagram ads are controlled by facebook Dashboard which in return can be handled through facebook ads Dashboard itself. Inside facebook there are number of platforms where the ads are shown. Facebook news feed, Facebook Desktop Feed, Instant Articles, Facebook In stream Video (Mobile), Facebook Banner (Mobile) Mobile Market place, Market place category feed & Details page,Facebook messenger platform, Facebook Stories & Instagram Stories, General search results, Instagram Feed, Instagram explore Feed and Video. With so much of platform to Display your Ads, Facebook brings the best impression rate compared to any other Advertising platform.
Ad sales are primary source of income. They sell ads on social media website’s And Mobile Applications. With COVID-19 Pandemic facebook has been experiencing huge demand in Ads, As most of the Small business has taken over their marketing strategy to online advertising.
Advertisers on facebook pay for the ads based on the number of impression delivered or other metrics such as number Clicks or App Installs
Facebook posted $84.2 Billion in advertising Revenue for the for the Financial year 2020. The Ad revenue has gown by 20.8% during the same year.
Another huge plus point in going to facebook ads is the Detailed targeting. Facebook allows the Advertisers to target the Right people starting from the Demographics to the interest & intent. These detailed targeting option will help the Advertisers reach the right customer at the right time. Advertisers can achieve a much higher return on investment by targeting the right Ads to the Right people or for the people who are likely to be interested. Most of the Facebook users see relevant ads instead of Irrelevant ones. This is done though the detailed targeting. The relevant ads provide better user experience than any other advertising platform.
The company has also enlarged other service’s such as Online payments, E-commerce & Business messaging. Though these services don’t generate revenue to the company through Ads, In the near future facebook is said to launch the Ads segment to the above platform. Whatsapp in another huge messaging platform owned by Facebook, Whatsapp is yet to receive the ads segment. The roomers are that the Ads will be shown on the stories of whatsapp contact as whatsapp dosen’t have much inner platform segment to display Ads.
The term “Pay Per Click” has been the core focus of making revenue in the digital ads segment. Where in facebook charges a certain amount for each click received in the Ad. Even though each click may not cost that much, It can quickly add up-to billions of click which is Billions of Dollars in revenue for Facebook. The amount charged depends on how long the campaign is running are depending how the Ad is performing. Though its not in our hands to determine how much the CPC can be for each Campaign or Ad delivered. The ultimate aim here is to reduce the CPC in each campaign. With my personal experience, The campaign has to run for a Long Duration where the Facebook algorithm determines on how well the ad is performing where CPC is reduced.
According to Facebook, There are now 8 Million Registered Business’s Globally that use their Advertising Platform. In Addition to this Small business can make use of these powerful tolls which is available for free where in they dont have to spend more oh Physical marketing.
In Today’s business model of Facebook, most of the Ad revenue comes from the Mobiles App. This is huge change from the company’s early age where most of the Revenue came from the website. With the controversy regarding the Data collected by Facebook of their users, Facebook has released Privacy tools where in users can opt whether facebook can collect their data or not.
Oculus A virtual Reality Headset Owned By Facebook
Facebook bought Oculus in 2014 for $2.3 Billion. Oculus is one of the Pioneer in the Virtual reality Headsets. Each Oculus headsets costs several hundred dollars, So Facebook makes money from each product sold.
Oculus even has Marketplace where people can purchase Apps & Games for the Headset. The revenue contributed from Oculus is relatively small compared to the Facebook Advertising business. Facebook is spending a lot of time in Research and Development & They are also Developing AR headsets (Augmented Reality). In the Long run Oculus Market place can become the biggest market place for Headsets and AR.
Facebook Portal – A Smart Communication Platform
Facebook Also has a video communication platform. These are smart devices that enable the users to communicate on Video or through Facebook messenger & Whatsapp. The device also has built in Amazon Alexa which will in return function as a smart Home device. Facebook portal can be the next big thing in the Video chat industry.
Workplace By Facebook
Facebook offers a service called Workplace which is mainly used for Business internal communication. This service directly competes with Slack & Microsoft Teams. Workplace has a free subscription option but it’s advanced feature costs $4 per each person. There are over 30,000 Business who are already using Workplace including big company’s like Starbuck & Walmart. Back in Feb 2019 Workplace had around 2 million paying users.