Maybe Facebook is just a place for you to read your ex’s status updates and scroll through the dog spotting posts but for the marketers, this is a gold mine. Facebook has earned the position of being the 5th most valuable company in the world. Around 30% of the world population is using Facebook. Among the 7.6 billion people on earth, approximately 2.27 billion owns a Facebook profile.
After a full analysis of how Facebook works, its gigantic network of products and ads, the total earning of Facebook is calculated, and the results are enough to blow your mind. According to the recent filings with the Security and Exchange Commission, every user paid a revenue of $6.18 (just in the 4th quarter) in the year 2017.
Jennifer M. Grygiel, the assistant professor of social media and communication at Syracuse University said, “Facebook is free, but the officials can sell insight depending on how we use this platform and then, serve it up for the sellers.”
The equation has not changed much in 2018. Last quarter, Facebook reported earning $6.09 from each user on average. This means that a total of 2 billion users paid $6.09 to Facebook. Can you imagine the humongous amount of money they are earning from this social networking site?
Facebook’s revenue per user: $26 a quarter
However, this earning depends mostly on the location of the user. The outcome from the users from Canada and the U.S. is substantial as they have big markets. The average earning from users in the US is $27.61 while from the users of the Asia Pacific or Bangladesh is only $2.61. This clearly shows how this social networking site makes 10x money from US-based users compared to Asian users.
Time spent on Facebook: 30 minutes a day on an average
The earning process of Facebook might seem kind of simple to you, but the marketers strategically place the advertisements. So, as a user, you might think you are not contributing much, but the information you are putting out is incredibly valuable.
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