Hi everyone, welcome to the 3rdinstalment of my digital marketing blog. Today we are breaking down self-serve advertising into the Facebook platform.
Ever wondered how Facebook, a free sign up platform generates millions each year? It Puzzled me too.
Facebook’s greatest asset is advertising. Approximately half a billion dollars per year is generated from advertising alone. Ad’s on Facebook are targeted to users based off the profile information provided by the individual, demographic of the person and their location in the world. Ad’s created by the user set a budget and bid for every thousand impressions or each click the ad receives.
Now that doesn’t explain much but here is the crucial part in this aspect of digital marketing. Although Facebook don’t charge an entry barrier fee, Facebook make their money every time you either promote your campaign, every time your campaign appears on your audience’s screen and every time someone clicks on the ad. This is all relative to the size of your ad but every aspect of using Facebook to run an ad costs money to make money and Facebook make a fortune off it, as do Instagram and other platforms.
It is a basic understanding of how the giants make their money, and generate hundreds of millions in the process from strategic digital marketing. My question to you all is do you believe that in the future, now with over 2.23 billion users (30% of the world), Facebook will charge for signing up to the platform? Let me know!
Sherlock's Blog MKF3881 
Thanks for the great read! I’d be super annoyed if Facebook does start charging, but could definitely see it happening!
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It would be horrible, I would probably leave but would be cost beneficial to them
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I don’t think Facebook would ever charge for use – I think a huge part of their positioning is that they’re easily accessible and free. I think by charging they would lose a lot of their userbase and subsequent advertising market
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I agree, I would probably leave to be honest if they had a subscription model. I hope they don’t
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A classic example of the users of the service being the product. Would there be value for Facebook to enable a subscription-based model in an ad-free future or is there more money to be made from advertising?
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Hi Kristel, I think a subscription based model would deter a lot of Facebook users who enjoy the ease of being able to create accounts and then have the option to start all over again if they are unhappy with the content. So I believe there is more money to be made from advertising and it would certainly be more pleasing for users.
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