How Does Facebook Make Money If Its Free?

How does TikTok make money?

Currently, TikTok charges its advertisers on a CPM (Cost Per Thousand Impressions) basis and the ad creating process is quite similar to other social media platforms.

Another source of income for TikTok is virtual coins through which both TikTok and TikTokers can earn money..

How does Facebook make its money?

Key Takeaways. Facebook sells ads on social media websites and mobile applications. Ad sales are the primary source of Facebook’s revenue. Facebook is experiencing increasing demand for advertising amid an acceleration of the shift to online commerce spurred on by the COVID-19 pandemic.

How does FB make money for free?

Instead, Facebook (FB) makes most of its money by serving ads on the social media and messaging platforms it owns — Facebook, Messenger, Instagram, and WhatsApp. Advertisers pay Facebook to make their ads visible to people. … In other words, Facebook does not “sell” data in any way.

How much money does Facebook make per user?

Facebook’s average revenue per user (ARPU) from 2012 to 2019 (in U.S. dollars)Advertising revenue per user in U.S. dollars201929.25201824.96201720.21201615.985 more rows•Feb 3, 2020

How does Mark Zuckerberg earn money from Facebook?

Diversification makes sense for Facebook CEO Mark Zuckerberg. His $550 billion social network is almost entirely dependent on ads to make money, as around 98% of its $56 billion of revenue last year came from advertising. … Ads account for about 20% of the Chinese company’s quarterly sales.