How does social media advertising work?
Posted: Mon Dec 23, 2024 8:58 am
Social media is already part of our daily lives. We use it to communicate with family and friends, to get information, to entertain ourselves, to shop, and even to find a job.
According to Statista , social media users are expected to exceed 3.5 billion by 2023 , increasing by 82% since 2020.
More and more companies are understanding the advantages that these platforms offer to increase online sales . So , knowing how much money social networks generate on the Internet is one of the questions you can ask yourself at this point.
To help you understand how money is managed on social media and whether it is feasible to invest in advertising, we'll tell you.
How much money do social networks generate on the Internet?
What role does advertising play on social media?
How does social media advertising work?
How much does it cost to invest in social media advertising?
Let's get started!
How much money do social networks generate on the Internet?
To give you an idea of how much money social networks generate on the Internet, look at how much revenue two of the most popular social networks generate:
Facebook
The social network Facebook (now Meta) earned a worldwide revenue of approximately US$118 billion in 2021, even with the growing popularity of other platforms such as Tik Tok.
Instagram
Instagram is one of the social networks that has grown the most in recent times in terms of revenue. In 2017, for example, it raised 64 billion US dollars. In 2020, it generated revenues of more than 22 billion dollars.
But how does money move on social media? Both Instagram and Facebook generate revenue through advertising that they promote in the form of posts and appear in users' feeds. Below we will see in detail what the role of advertising is on social media .
What role does advertising play on social media?
Discovering the role of advertising on social networks is another point to understand how much money social networks generate on the Internet.
Most social networks base their popularity on keeping their use free for users. However, we know that no company can survive without revenue. This is how social networks use advertising to finance themselves.
At the same time, a company that uses social media to advertise its products gains followers in return, and increases the chances of getting leads that fit its target audience.
As a result, they are followed by more prospects interested in buying and can increase their sales, recouping the investment in advertising on social networks.
You may be interested in learning how to calculate ROI and optimize your investment.
Now you have a better idea of what role advertising plays on social media, so you can get a better idea of how much money social media generates on the Internet and how.
There are two options for advertising a indian email list product or company on social media: paid and free . For your social media marketing strategy to work best, it is best to use both options.
Paid advertising on social media
In paid advertising, you must pay the social network to advertise your product in user accounts that belong to your ideal customer profile .
To achieve this, you can use the data you collect from your users and segment them according to their tastes, location, age, etc. This way, show your product on the networks of your target audience who do not yet follow you on social networks, seeking to attract them. Some examples of online advertising fees are:
Cost per thousand (or pay per impression) :a price is set for every thousand views. The company pays when the ad reaches a thousand views, then 2000 views, etc. Generally, it is used when the objective is for the
According to Statista , social media users are expected to exceed 3.5 billion by 2023 , increasing by 82% since 2020.
More and more companies are understanding the advantages that these platforms offer to increase online sales . So , knowing how much money social networks generate on the Internet is one of the questions you can ask yourself at this point.
To help you understand how money is managed on social media and whether it is feasible to invest in advertising, we'll tell you.
How much money do social networks generate on the Internet?
What role does advertising play on social media?
How does social media advertising work?
How much does it cost to invest in social media advertising?
Let's get started!
How much money do social networks generate on the Internet?
To give you an idea of how much money social networks generate on the Internet, look at how much revenue two of the most popular social networks generate:
The social network Facebook (now Meta) earned a worldwide revenue of approximately US$118 billion in 2021, even with the growing popularity of other platforms such as Tik Tok.
Instagram is one of the social networks that has grown the most in recent times in terms of revenue. In 2017, for example, it raised 64 billion US dollars. In 2020, it generated revenues of more than 22 billion dollars.
But how does money move on social media? Both Instagram and Facebook generate revenue through advertising that they promote in the form of posts and appear in users' feeds. Below we will see in detail what the role of advertising is on social media .
What role does advertising play on social media?
Discovering the role of advertising on social networks is another point to understand how much money social networks generate on the Internet.
Most social networks base their popularity on keeping their use free for users. However, we know that no company can survive without revenue. This is how social networks use advertising to finance themselves.
At the same time, a company that uses social media to advertise its products gains followers in return, and increases the chances of getting leads that fit its target audience.
As a result, they are followed by more prospects interested in buying and can increase their sales, recouping the investment in advertising on social networks.
You may be interested in learning how to calculate ROI and optimize your investment.
Now you have a better idea of what role advertising plays on social media, so you can get a better idea of how much money social media generates on the Internet and how.
There are two options for advertising a indian email list product or company on social media: paid and free . For your social media marketing strategy to work best, it is best to use both options.
Paid advertising on social media
In paid advertising, you must pay the social network to advertise your product in user accounts that belong to your ideal customer profile .
To achieve this, you can use the data you collect from your users and segment them according to their tastes, location, age, etc. This way, show your product on the networks of your target audience who do not yet follow you on social networks, seeking to attract them. Some examples of online advertising fees are:
Cost per thousand (or pay per impression) :a price is set for every thousand views. The company pays when the ad reaches a thousand views, then 2000 views, etc. Generally, it is used when the objective is for the