The Facebook business strategy is centred on providing its tools and services to billions of users for free, and then making money by allowing businesses to show advertisements to Facebook's users. Advertisers pay Facebook the price that is determined in an auction based on supply and demand.
Unlike other social media platforms, Facebook doesn't rely on advertising to generate revenue. The company offers a free platform which allows users to use the platform's services for free but also make money by sharing content and selling their personal data.
Facebook has been able to generate revenues from a variety of sources. They have generated income through advertising, online services, and selling digital goods.
Some video makers will be paid by Facebook for publishing their work on the network. Videos that keep people viewing for longer will earn a higher percentage of the ad money, with Facebook keeping 45 percent. Facebook claims that its members watch four billion videos per day.
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