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Facebook ranked No. 34 in the 2020 Fortune 500 list of the largest United States corporations by revenue, with almost $86 billion in revenue [174] most of it coming from advertising. [175] [176] One analysis of 2017 data determined that the company earned US$20.21 per user from advertising. [177]
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Pay-per-click (PPC) has an advantage over cost-per-impression in that it conveys information about how effective the advertising was. Clicks are a way to measure attention and interest. If the main purpose of an ad is to generate a click, or more specifically drive traffic to a destination, then pay-per-click is the preferred metric.
Facebook keeps 45% of ad-break revenue for content shown on Facebook Watch, while its content-producing partners receive 55% of ad revenue. [5] In January 2017, the company announced that it would be adding "mid-roll" advertising to its videos, in which ads will appear in videos after users have watched at least 20 seconds. [ 15 ]
Facebook is the most popular social advertising platform, but an increasing number of young people use Snapchat. Pew Research Center data show that 78% of young Americans (18–24 years old) use Snapchat, and 54% in the 25–29-year-old group. [ 7 ]
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