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How does social media generate revenue? (lemmy.world)

submitted 1 week ago by pointnull@lemmy.world to c/asklemmy@lemmy.ml

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What do people who own social media platforms gain from it and how? Where do they get the revenue from? I know that ads make up some part of it but is the revenue generated from ads enough?

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[–] dan@upvote.au 9 points 1 week ago* (last edited 1 week ago)

Take the superbowl for example. It's usually the most viewed event every year in the US

Interesting that you mention the superbowl, since one of the techniques that sales reps at large digital ad networks (like Google and Facebook) use to sell ads to large advertisers is comparing it to the superbowl.

This year's superbowl had a viewership of around 127 million people. In comparison, 194 million Americans use Facebook at least once per day and 267 million use Google, so your ads on those platforms will have a wider potential audience than the superbowl, while being much more cost effective since you can run the ad just to a more specific audience rather than having to run the ad to every single person watching TV at that time.