Business model of Facebook
                     BUSINESS MODEL 
OF FACEBOOK
INTRODUCTION
• Facebook is a business model that is 
attention-based. As such as of June 2019, 
the algorithms condense the concentration 
of more than 2.4 billion people. 
• Ad sales from Facebook accounted for $31.9 
billion, or 98.66% of the overall revenues. 
• Facebook Inc. has a product line consisting of 
Instagram, Messenger, Oculus, and 
WhatsApp.
Source: fourweekmba.com
HOW DOES 
FACEBOOK MAKE 
MONEY?
• In an advertisement business model, 
Facebook makes money. 
• Nearly all the money comes from tailored 
advertising. Indeed the 2018 breakdown of 
Facebook sales show the same.
Source: fourweekmba.com
ADVERTISING
• Advertising (more than 98% of revenues): it 
consists mainly of showcasing advertising 
items on Facebook, Instagram, Messenger 
and third parties. 
Source: socialfresh.com
PAYMENTS AND 
OTHER FEES
• Payments and other fees (less than 2% of 
overall revenue): the net charge earned by 
developers using the infrastructure of 
Payments or revenue from the delivery of 
devices to the virtual reality platform and 
other services
Source: zdnet.com
WORTH OF FACEBBOK
• The social network founded by Mark 
Zuckerberg in 2004 in his Harvard dorm 
room is worth more than four hundred billion 
dollars at the time of this writing. 
• The business model of Facebook is very easy 
and based on publicity. 
Source: businessinsider.com
MARKET 
PROFITABILITY
• The company has been able to unlock so 
much market profitability from its practices 
that it has become one of Google, Netflix, 
Amazon, and Apple's most profitable tech 
giants.
Source: fourweekmba.com
THE FIVE PILLARS OF 
FACEBOOK’S BUSINESS MODEL
FOCUS ON INDIVIDUAL
• On mobile devices and personal computers, 
Facebook helps users to link, post, explore, 
and chat with each other. 
• There are a variety of different ways to 
connect with individuals on Facebook, the 
most popular of which is News Feed, which 
shows an algorithmically ranked collection of 
individualized stories and advertising for 
each individual.
Source: animoto.com
INSTAGRAM
• Instagram is a network through photos, 
videos, and direct messaging for sharing 
visual stories. 
• Instagram is also a platform for individuals 
to remain linked to the values and groups 
they care about.
Source: theverge.com
MESSANGER
• Messenger is a networking platform that 
makes it easier for individuals to 
communicate through a range of networks 
and devices with other individuals, groups 
and companies.
Source: websolutions.com
WHATSAPP
• WhatsApp is an easy, quick, and trustworthy 
application for messaging that is used safely 
and privately by people around the world to 
communicate.
Source: fourweekmba.com
OCULUS
• Oculus virtual reality technology and content 
portal power goods that empower individuals 
to practice, study, play games, access 
content, and engage with others in a fully 
immersive and interactive atmosphere.
Source: fourweekmba.com