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

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

22 comments fedilink hide all child comments

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?

you are viewing a single comment's thread
view the rest of the comments

[-] dan@upvote.au 1 points 1 month ago* (last edited 1 month ago)

For what it's worth, Q4 always has higher ad revenue because of Black Friday and Christmas.

I think the cost per ad went up too (that's also in the presentation). Google and Facebook both mostly use an auction system for ads, so the price is based on the market. Out of all the possible ads a user can see (active ads targeting their demographic), the one with the highest bid will be shown.

this post was submitted on 16 Feb 2025

37 points (86.3% liked)

Asklemmy

47180 readers

717 users here now

A loosely moderated place to ask open-ended questions

Search asklemmy 🔍

If your post meets the following criteria, it's welcome here!

Open-ended question
Not offensive: at this point, we do not have the bandwidth to moderate overtly political discussions. Assume best intent and be excellent to each other.
Not regarding using or support for Lemmy: context, see the list of support communities and tools for finding communities below
Not ad nauseam inducing: please make sure it is a question that would be new to most members
An actual topic of discussion

Looking for support?

Looking for a community?

Lemmyverse: community search
sub.rehab: maps old subreddits to fediverse options, marks official as such
!lemmy411@lemmy.ca: a community for finding communities

~Icon~ ~by~ ~@Double_A@discuss.tchncs.de~

founded 6 years ago

MODERATORS