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How Instagram And Facebook Make Money

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Everyday more than 2 billion people use Facebook, Instagram, WhatsApp or Messenger. That's more than a quarter of the world's population. And despite a rising number of privacy scandals and public backlash — Facebook is still growing. Since the apps are free to use, Facebook sells advertising to make money. Here's how the company's advertising model works. Facebook could launch a dedicated news tab in partnership with “high-quality” publishers, if CEO Mark Zuckerberg carries out his latest vision for news content on the platform. The dedicated news tab sounds similar to Facebook’s Watch tab, which hosts original programming and longer-form videos — and shares some of the advertising revenue with publishers. “We want this to surface high-quality and trustworthy information,” Zuckerberg said in a conversation with Axel Springer CEO Mathias Döpfner that was posted to Zuckerberg’s Facebook page. “I think there’s real opportunity within a separate news surface to have better monetization for publishers than we have today in News Feed.” Facebook has been blamed in part for the erosion of traditional and digital media, through its hosting of often-free and widely shared news articles. As a result, Facebook has been toying with different ways to support digital publishers and simultaneously stop the spread of misinformation that purports to come from legitimate outlets. Facebook would partner with publishers to make sure their content is available in the new feature, Zuckerberg said, similar to Apple’s latest push into subscription news. “Local journalism is having a hard time transitioning to the internet in general, and I would hope that we can be one of the ways that we can support and make [that] more sustainable from a distribution and monetization perspective,” Zuckerberg said. The new tab would be a free service for users, Zuckerberg said. The company wouldn’t employ journalists to produce news but could hire curators to maintain the quality of the product. Facebook executives have been discussing the idea for a while, according to a company spokesperson, but the product is not yet in development. » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Find CNBC News on Facebook: http://cnb.cx/LikeCNBC Follow CNBC News on Twitter: http://cnb.cx/FollowCNBC Follow CNBC News on Instagram: http://cnb.cx/InstagramCNBC #CNBC #Facebook #Instagram How Instagram And Facebook Make Money
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Text Comments (272)
CNBC (3 months ago)
Have you ever had a moment where you thought Facebook was listening to your conversations because of an ad that popped up?
Variety Marketplace (1 month ago)
They simply use DATA collected from the use of their service ... and that could be both GOOD and BAD.
Gracy Rù (2 months ago)
Avatar like 'Voodoo dolls' 😱😱💀
quan Brooklyn kid (3 months ago)
@Online Gamer haha
pure uploads (3 months ago)
Yes definitely instagram uses audio patterns
Nicholas Littlejohn (3 months ago)
It's super creepy that they are always listening to us.
sai Varoon lyricist Singer (11 days ago)
what if every user stops using Facebook or whatever application it is!? Will every human gets through the extinction of their respective lives?
davide (20 days ago)
"avoid ads on Facebook is pretty much impossible", well it's possible...
fashow peopletv (27 days ago)
They make 20 dollars a week from selling my data! 😢
sutats (1 month ago)
Soylent Green is people
Judith Jackson (1 month ago)
Bruh there is so many Facebook ads on YouTube
im not a polotician look at pictures on phone (1 month ago)
Selling your private information
Rakshith N (2 months ago)
Isn't it beneficial to users to see products or offers they are interested in instead of seeing some ads that makes no sense to them ??
Nicolas (2 months ago)
it keeps growing because not all people are bad people, and most people know that....
jonathan holmes (2 months ago)
what is the harm other than them being able to advertise things that might actually be relevant to me?
Mr Peco (2 months ago)
@8:55 yep
Bichr Salhi (3 months ago)
The Facebook ecosystem needs to disappear. Ppl have to boycott them.
Y S (3 months ago)
*By scamming people*
Udesh Pandey (3 months ago)
by stealing and selling your personal data to private companies
IUseForceField (3 months ago)
I currently have 3 business and I spend roughly 350k a month on Facebook ads. So yea.. it’s ads.
tyrese nickson (2 months ago)
Wtf 😂 idk whether you're lying or jot but if you're not well done
vighnesh kadam (3 months ago)
....By selling private data !!!!
Ron Villejo (3 months ago)
Despite many of us leaving, deleting, or criticizing Facebook, billions still use it - along with Instagram, WhatsApp and Messenger. What's more, tragic scandals and data breaches notwithstanding, advertisers are still advertising on its wide ranging ecosystem. Go figure!
Alpha Jay 3.0 (3 months ago)
So has does Twitter make money?
Brandon Cohen (3 months ago)
Who was creating this B-Roll? They must be a bio-hacker. Ads for the ChiliPad and Dexcom G6 😂
mubarek Daha (3 months ago)
Was she talking about gdpr
Deven Swiergiel (3 months ago)
Why is targeting ads based on race, ethnicity, and gender wrong? I get why targeting ads as a whole are contentious, but why is the line race, ethnicity, and gender? Those categories do have significant differences on spending habits.
Samet Dündar (3 months ago)
I think it has to be enormous scandal..Well we have seen that enormous lately.But i think,there is literally no way to stop people from using facebook.As you have said,it keeps growing and never stops dude.I have deleted my account a year ago.And since then i am out of facebook business.
Janwar Yulius (3 months ago)
I'm glad CNBC has stepped up and helped educate an ignorant public brainwashed by a biased media. The following was in reply to a comment about you being the product if a service is free, I decided to repost in here too: Rather than you being the product, you are instead on the receiving end of a service that you don't have to pay for, while Facebook is a broker/matchmaker that brings small and big businesses that likely interest you to your attention. It's like a company hiring a headhunter to find the best candidates for a job, is the candidate the product? No, they are not, rather they are on the receiving end of a wonderful service that connected two relevant parties. Only in the case of Facebook, you get that added value from relevant ads for free while also getting a platform that is actually quite incredible at helping you share your life to your friends and family, also for free. The ads do not even intrude or bother you in the least, you can scroll past them at will if they do not interest you, it's really that simple. And if they *do* interest you, then guess what... You were provided a free service, and received value. Sounds like a pretty darn good deal to me... And yet sheep-like people are so easily influenced by the media's portrayal of all of this. You know.. the media that is the losing ad money to Facebook and Google? Yeah those guys.. The very same ones who send you ads that intrude on your precious entertainment with commercials you have to watch whether they interest you or not? I love the fact that I would get ads that might improve my lifestyle with things I'm interested in or relevant to the city (or even part of the city) I live in rather than hours away or even on the other side of the world. I never have to face cooking ads, celeb/gossip service ads, rock n roll ads, or beer ads etc. cause Facebook knows I have no interest in such things. But I am constantly "bombarded" with ads of courses, books, football, business services, or other kinds of relevant services that actually interest me and that have added value to both my personal as well as professional life. So in summary, stop being like sheep, and do some thinking and analyze the reality around you a bit. Good luck.
WorldPrestige (3 months ago)
CNBC is bullish on Facebook I see LOL
U Haul (3 months ago)
& lose more monay by deplatforming pro-president users.
MKAY Thanks for Subscribing Have a nice day! (3 months ago)
MKAY Thanks for Subscribing Have a nice day! (3 months ago)
Eliene França (3 months ago)
Vou denunciar vcs nem que seja a última coisa que eu faça na vida
Татьяна Ром (3 months ago)
29 North Motorsports (3 months ago)
Why can’t I sell my own data?
B. Eder (3 months ago)
You could be labeled "Jew Hater" or Anti-Semitic if disagree with Isreali Policy.
Balde Aguirre (3 months ago)
We should stop Facebook.
Николай Помещенко (3 months ago)
I dont care who spy on me... but i live in closed country, goverment better stay out of my life 😣
Invesigator 2 (3 months ago)
I hate Facebook but I'm not doing to deny that the Jewish owners of Facebook are commercially brilliant. 'Targeted ads' is Jewish Internet invention.
Mark Tristan R. Ocampo (3 months ago)
*By invading our privacy and stealing our data then selling it.*
Mark Tristan R. Ocampo (3 months ago)
@Ziyaad Fredericks And millions of others.
Ziyaad Fredericks (3 months ago)
Invading your privacy and stealing your data? They wouldn't have your data if you didn't voluntarily sign up for their services🙄
Andie Watson (3 months ago)
I pay Facebook $50 a month to run ads for my business 😩😭😩 it gets me clients .
Michael M (3 months ago)
Why dont they pay us? Since they sell and distribute our information
Ziyaad Fredericks (3 months ago)
Because you use their products?
Peyton Cannon (3 months ago)
That pause between the senator question and Marks response. 😂
Omar Ahmed (3 months ago)
Facebook doesn’t pay taxes so I assume they don‘t make money...
Pauley (3 months ago)
Uhm.. How much did you guys get for all the ads where shown in this video, tho???
Paul Pinto (3 months ago)
So, how about we tax FB shareholders 100% tax on buying and selling the shares ? Boom
WRO (3 months ago)
0:34 Mark kept his cool. I wanted to say "why senator, we use magical ponies who delivery emails to make money"
Elias Dolinsek (3 months ago)
I think Google is definitely better at data collection...
mino's finacé (3 months ago)
This video was very helpful. Straight to the point, not too long, informative and easy to understand.
Christophe Abiel (3 months ago)
His days are NUMBERED. I will not rest until I get revenge.
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Kobe Bean Bryant (3 months ago)
10yrs in facebook but i dont buy something because facebook advertisement
Yazilim Sultani (3 months ago)
Hi I want to access Facebook Media Support. What can I do ? Thanks.
Ralph Rykielle Fuentes (3 months ago)
So we don't pay for our internet?
PTbench (3 months ago)
Anyone else notice how traditional media companies love to spin new media in a negative way? Oh yeah, they're competitors and new media is now getting 50% of their $.
Arjun Chatterjee (3 months ago)
They sell ads and allow people to utilize vast amount of user data to target people. That is all. The guy maybe a lizard and all, but he has built a great platform. Something crap msm cannot do.
Shikhar J Dutta (3 months ago)
Thieves of today's world
A Modern Poet (3 months ago)
Senator, we run ads.
0 0 (3 months ago)
facebook is cool...relax...enjoy facebook...Zuckerbergergerg...is good....enjoy Zuckerberg...would you like a diet coke?
Triton (3 months ago)
“Senator we run ads”
Boss Lax316 (3 months ago)
So obvious: ads
Yom Woldemichael (3 months ago)
aren't targeted ads better than random ads?
Finn (3 months ago)
"Senator.... we run ads" - Mark Zuckerberg
damn i love indonesia (1 month ago)
Hate ads the annoying don't @ me
Zokizzy Foshizzy (3 months ago)
It's capitalism's ultimate form: a website about yourself with constant ads tailored to make you spend money on stuff you like. It'll only get worse. Ad companies have Facebook by the balls and will never let go. Same with Youtube.
Sherry Flavour (3 months ago)
Hey, if you can show me advertisements based on my personal interests, great! But if you misuse that data to target me with fake news and force me to live in a bubble, no thanks Mark.
Nik Tiger (3 months ago)
Mark Zukerberg looking like an alien, wearing human body..
Ahmed Belkhir (3 months ago)
A mass shooter? 😑 Why don’t you call him a terrorist? Because he’s not Muslim? Hypocrisy..
Zenn Lozanno (3 months ago)
They run ads and human catalog
R Jay (3 months ago)
Facebook is being criticized so much that the criticism will end up being irrelevant.
Aurobindo Ghosh (3 months ago)
isn't instagram now a property of facebook?
nero vanguard (3 months ago)
Yes it is
Travis Newton (3 months ago)
Ads. The GD ads. Just like YouTube. Just like every unbearable service on the internet. It’s the world of ads!!! We need Adblock for life.
Cool One (3 months ago)
My Facebook profile shows me targeted ads for cheap beer, legal brothels, Thai brides, and ramen noodles 🍜. So I’d say it’s pretty accurate.
0 0 (3 months ago)
Cool One you had me til you threw in 'brides'....lol
hbarudi (3 months ago)
Just got a samsung note 8, we can only disable but unable to fully uninstall facebook. Why samsung you do this let us fully uninstall the app there is no reason for it to be a system app? Even if samsung got money for this, now they are tracking us even with the app disabled. For facebook itself, why there is no pay to remove some or all the ads option? Now them owning whatsapp that my family is dependent on is a major problem as I tried many different alternatives and my family simply uninstalled them all. Also whatsap needs a pay to remove the advertisements option too. Pay to stop tracking data option as well. I also do not believe in this situation regarding the influence of the 2016 election of Trump due to the fact that we expected him to win that election.
N L Sagar (3 months ago)
Interesting topic
Antonio Di Iorio (3 months ago)
I don’t understand why that should be dangerous. I’m conscientiously giving them datas so that they can suggest me better product to have, still my choice to buy them or not. Honestly I’m happy I don’t have to see tampons ads instead of the new geek t-shirt. Also in politics, an ideal world would see parties rise if they have significant relevance as seen by data... It is not Facebook responsibility if they choose to manipulate people’s willing instead of embrace it.
Mama (3 months ago)
I left Facebook long ago.
German (3 months ago)
So tell how did Facebook showed me an ad for a product that i was using a minute before opening Facebook, the exact product and brand. I did not browse for the product in anyway, all i ever did while using the product was open the instructions booklet and i had my phone on my hands checking my notifications. How did Facebook did that, exactly!
German (3 months ago)
So tell how did Facebook showed me an ad for a product that i was using a minute before opening Facebook, the exact product and brand. I did not browse for the product in anyway, all i ever did while using the product was open the instructions booklet and i had my phone on my hands checking my notifications. How did Facebook did that, exactly!
Masterr Laster (3 months ago)
This Facebook Ad brought you by Facebook.
Commando Master (3 months ago)
FB has too much market domination. It's gonna be hard for another similar social media website to take over FB.
Jon N (3 months ago)
Linkedin, Twitter, and Youtube are still social media who is not facebook, but still
superstarrr121 (3 months ago)
Not to mention that annoying Gary V guy pushing kids to buy ads
Guyana Online Shopping (3 months ago)
This Is not true lol how much did you get paid to say that.
Sushant Chaudhary (3 months ago)
Better late than never. 👉🏽 https://www.deletefacebook.com . Trust me! ✌🏽
Raphael (3 months ago)
And this is why we don't use social media.
Allen Xiang (3 months ago)
I wonder if this video made to manipulate FB stock
inah (3 months ago)
social media is very addictive i wonder what it would take for ppl to delete their apps
Sarann K (3 months ago)
Why does my keyboard auto correct Zuckerberg to Sucker berg ?
Saosaq Ii (3 months ago)
Plot twist: This video is: Sponsored by Facebook
Patrick M (3 months ago)
We’re just faces stuck inside an ad marketplace pretty much
Johnlim40 (3 months ago)
the facebook gives me a lot of fun and its free. so what do you want ? i cant live without whatsapp anyway.
yz nana (3 months ago)
Men ! I love CNBC
InvestingWisely (3 months ago)
By spying on your every move then showing you relevant ads.
Ricardo Freire (3 months ago)
They do hear the conversations. Nothing new
th33 Smackdown (3 months ago)
*uck facebook
Trevor Phillips (3 months ago)
They make money on ads. Made a 9 minute video just to say they make money on ads?
See Victor (3 months ago)
I don’t have a single ads, none at all because I only follow news organisation.
Adrees Mukhtar (3 months ago)
Well done report with a lot of 🙀 moments.
StreamerStreamer (3 months ago)
Facebook keeps having users (at least in 3rd world countries) because people are poor and telecom companies do not offer free calls to their mobile or internet plans. In Australia, being able to call is the difference of life and death and as such is a right. In essence, Depriving it is a crime. Messenger and VOIP provides free calls virtually since you are using the internet anyway for other functions than that. Different regional organizations (EU, ASEAN, NATO, ETC.) should declare this as basic right for their member countries. This will demand enforcement for free of charge calls.
Night Storm (3 months ago)
Facebook needs to spend money on protecting children - there are over 500,000 predators online a day and every minute 3 out of 7 children become victims.
Nicholas Littlejohn (3 months ago)
They sell your dossier, obviously!
1,000 subs with no videos (3 months ago)
*Senator we run ads*
King Power (3 months ago)
So technically Facebook isn't free you pay with your personal information
Hoàng Điệp Lựu (3 months ago)
It's still free.
jonny5777 (3 months ago)
Great video as always. I actually understand Facebook a lot more now but I still think that Zuckerberg is a creepy robot from the future
Nicholas Littlejohn (3 months ago)
He made the platform to creep on women at school.
Ali Raza Zaidi (3 months ago)
"Senator, we run ads"
Ilannguaq K. Møller (3 months ago)
6:58 “Dispite data breaches and lawsuits, facebook allures advertizers”? That’s exactly why advertizers keep choosing Facebook. Some analysis