How Does Facebook Make Money If It's Free to Use?

Discover how Facebook generates revenue through advertising, Marketplace, and virtual goods while remaining free for users.

Published

Video transcript

Facebook makes money primarily through advertising. Businesses pay Facebook to display ads to users based on their interests and behaviors. Additionally, Facebook earns from features like Marketplace transactions and fees from virtual goods in games. This allows Facebook to remain free while generating substantial revenue from advertisers.

Questions and answers

  1. How does Facebook earn money from advertising?

    Facebook earns money by allowing businesses to pay for ads that target users based on their interests and online behaviors.

  2. What other sources of revenue does Facebook have besides advertising?

    In addition to advertising, Facebook generates income from Marketplace transactions and fees on virtual goods within games.

  3. Why is Facebook free to use if it makes money?

    Facebook remains free to attract a large user base, which makes its advertising platform valuable to businesses.