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How does social media generate revenue?
(lemmy.world)
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this post was submitted on 16 Feb 2025
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How do ads generate enough revenue to sustain themselves?
Advertising is one of the four fundamental forces of the universe. Once you start charging for ads, you can basically shape the universe to your will.
most businesses have to run ads to turn a profit. part of the equation of every sale you make comes down to a finely balanced cost of ads vs the profit on sales of the product or service, if the cost of advertising is higher than the product, it's a product that basically just won't enter the market (yay capitalism). so ads companies like google or facebook are essentially forcing most businesses around the globe to pay them a percentage on each and every product or service sold.