This video explains in detail how Facebook and Instagram generate billions in revenue despite offering free services to more than two billion users daily. Facebook’s core business model is built on advertising — about 99% of its total revenue comes from highly targeted digital ads. Using data from its family of apps (Instagram, WhatsApp, Messenger, and Facebook), the company allows advertisers to reach specific audiences based on demographics, interests, behavior, device type, income, and political views. Through powerful data analytics, ad algorithms, and tools like Facebook Pixel, advertisers can run hyper-personalized campaigns that outperform traditional TV or print ads. The video also explores Facebook’s controversies around privacy, data collection, and discrimination in ad targeting — such as Cambridge Analytica — and how Facebook is adapting to regulatory changes and new privacy-focused initiatives like Clear History and Stories Ads. Despite public scrutiny, the Meta ecosystem continues to grow in users, advertisers, and global influence, redefining how digital advertising works in 2025.
