Why is Facebook so profitable while other social networks aren't?

TomasMiller said:
Why has Facebook grown to be profitable while other social networks haven't? Is it because facebook actually had real people on it, so they could harvest their real data and resell for good advertising, while other social networks mostly have anonymous people?
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it’s not really about “real people vs anonymous” tbh
FB just figured out ads way earlier and way better than everyone else
they have insane data + years of optimizing their ad system, so advertisers actually get results and keep spending
most other platforms either came too late or never built a solid ads system, so money doesn’t stick there the same way
also fb audience is huge and kinda “broad”, works for almost any niche, that’s hard to beat
end of the day it’s simple - where advertisers make money, they keep pouring more into it
 
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TomasMiller said:
Why has Facebook grown to be profitable while other social networks haven't? Is it because facebook actually had real people on it, so they could harvest their real data and resell for good advertising, while other social networks mostly have anonymous people?
Click to expand...
Yes. Having your real info on a platform helps the platform to target you better with ads. Facebook has trillions of data points, therefore the ads there are better targetted.
 
on other platform, people also make a lot of money from system, it's beacause you don't know to make money. I've even noticed that people's dependence on FB has decreased signigicantly
 
Maybe that's part of it, but I think people give the real identity angle too much credit.
I've seen accounts with fake names perform just fine for years. What Facebook has that most platforms don't is an insane amount of user activity. People scroll, click, watch videos, join groups, message friends all day long.
As an advertiser, that's hard to beat. I've tried other traffic sources, but Meta keeps pulling me back because the targeting is usually good enough to make the numbers work
 
because Zuck treated Facebook like a data mining operation from the start. Other platforms try to get users first then start selling their data, but FB was built from the ground up as a way to get and sell as much personal data as possible. Also their ad system is way superior compared to other social media
 
I don’t think other socials are not profitable tbh. Some are making money too, just nowhere near Meta scale.
FB/IG had the perfect combo for ads: real user data, huge reach, mature tracking, lookalikes, tons of advertisers fighting in the auction. Other platforms have traffic, but not always the same depth or buyer intent. So yea FB is not magic, they just built the best money machine for ads over many years
 
I guess it’s because of ‘real users’ when compared to other platforms.
 
It's true that real-identity data enables FB to create an identification system that few other platforms can match, how ever, the struggles other social networks face in generating profit aren't solely due to anonymity, but rather stem from their respective business models
 
Facebook's biggest advantage is its massive user base, diverse ecosystem (Facebook, Instagram, Messenger, WhatsApp), and incredibly powerful advertising platform. User data helps make advertising more effective, but their success isn't solely due to that; it's also thanks to the huge user network and the businesses that have become dependent on the platform
 
Perhaps Facebook's profitability stems from its use of real identities and high level of authentication.
 
well i think a really important reason make fb different from other platform is that they build fb as an advertising machine, not just a social network. The platform get a huge number of user and they can identify, analyze interests and behavior of them which is very valuable for businesses.
 
TomasMiller said:
Why has Facebook grown to be profitable while other social networks haven't? Is it because facebook actually had real people on it, so they could harvest their real data and resell for good advertising, while other social networks mostly have anonymous people?
Click to expand...
I do not believe that the use of their own names by individuals had anything to do with this. Facebook created an ecosystem where people had similar interessts, formed groups, communicated with businesses nd spent a huge amount of time there. All this gave more value to the platform itself nd proviided better targeting to advertisers.
 
Unlike anonymous networks where users browse hidden behind pseudonyms, Meta turns granular real-world data into highly targeted, hyper-converting advertising infrastructure that advertisers are willing to pay a premium price for.
 
TomasMiller said:
Why has Facebook grown to be profitable while other social networks haven't? Is it because facebook actually had real people on it, so they could harvest their real data and resell for good advertising, while other social networks mostly have anonymous people?
Click to expand...
However, the strength of Facebook does not lie only in its ability to collect data, but it lies in the fact that its services are highly used by people every day in various aspects of their lives. This makes it easier for comipanies to reach targeted customers.
 
TomasMiller said:
Why has Facebook grown to be profitable while other social networks haven't? Is it because facebook actually had real people on it, so they could harvest their real data and resell for good advertising, while other social networks mostly have anonymous people?
Click to expand...
meta tracks everything from buying intent to life events, giving advertisers a predictable ROAS that makes businesses continuously pour budget into their ecosystem
 
Facebook did not just become a social network but it became an advertising business. The combination of billions of users, detailed audience targeting and tools for businesses made it much easier to generate consistent revenue than many other platforms.
 
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