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

Facebook has a policy of using real names, phone numbers, and Gmail addresses, so there aren't many fake accounts, making the exchange of goods very convenient.
 
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Real identities plus scale are the big factors imo. Verified profiles mean much cleaner ad targeting data than platforms full of anon/throwaway accounts, and owning Instagram + WhatsApp lets them diversify revenue and cross-sell ads across a massive combined user base.
 
I believe that the reason for that is that facebook has begun compensating its creators more and therefore wants to retain them on its platform and also motivate them to generate content.
 
this is due to the fact that Facebook now pays creators.this will probably help them retain their creators and motivate them to make more and more content.This make sense as more creator mean more content and engagement on Facebook.
 
Yeah the real identity stuff is part of it, but the real money maker was always the pixel and tracking off-platform activity. @seotrends mentioned the cross-platform data which is huge, but FB basically got their tracking script installed on half the web. They don't just know who you are on facebook, they know what you buy on some random Shopify store. That feedback loop is what made their ad engine actually convert for small advertisers... other networks like twitter or reddit never really figured out how to make direct response ads work for the average guy spending fifty bucks a day.
 
Yeah, the data part is a big reason, but it's not just because Facebook had "real people" while others didn't.
Facebook won because it had scale + user behavior data + advertiser tools. Billions of people were using it daily, sharing interests, locations, relationships, pages they liked, things they clicked, etc. That gave advertisers a much better chance of reaching the right people
 
Facebook enormous profits stem from its real identity verification system, which allows for accurate data collection to optimize targeted advertising, far surpassing other anonymous social networks.
 
You're not wrong at all. Real names gave them clean demographic data early on, but tracking off-site conversions is what made them untouchable. Anonymous networks are mostly selling low-intent clicks, while Meta built a system that actually optimizes for sales and revenue.
 
Because it's the only one that does not motivate people to create fake activity, while youtube ads, twitter, google ads all motivate people that get money through adsense to create fake views on their website/videos to make more money.

And because google/bing implemented a system where only corps and funded startups can make money because they are the only oen who can pay $15-30 per click, because system sort people based on their probability to convert and the ones that has most probability to convert they sell to those who are ready to pay the most.

Facebook doesn't have it so developed, but will eventually add it too. Because I already see patterns on fb ads that they implemented same system as google.

At the end of the day with low/medium budget on google/bing you get mostly bots, and barely break even.
 
I would say that is definitely part of the reason. Since Facebook has so much information about people and their real world connections it can help advertisers reach more relevant audiences and measure how their campaigns perform. That combination of a huge user base and strong targeting is probably one of the main reasons Facebook has become such a powerful advertising platform.
 
Not only FB, I see TikTok has real people users too. The thing is FB has older generation with money, while TikTok mostly young people
 
in my opinion, other big platforms still get profit, but not as much as facebook. if there is no profit, nothing can be survive.
 
Oldest one, huge real named active users ... these reasons may be
 
I think the bigger factor is Facebooks huge user base strong advertiser targeting, and mature ad infrastructure Data helps with relevance but the scale and ability to connect advertisers with specific audiences are major parts of the business model.
 
One of Facebook's biggest strengths is the ability to connect people from different places while still maintaining those personal relationships.
 
I think the biggest reason Facebook became so profitable is that it built an extremely effective advertising system around identity, scale, and user behavior. Having real identities definitely helped with targeting and measurement, but Facebook’s business model was not primarily about simply reselling individual users’ personal data to advertisers. The bigger advantage was being able to let advertisers target specific audiences using signals Facebook already had, while keeping the actual user-level data inside its own platform.

I also think Facebook benefited from having massive reach, strong engagement, and eventually Instagram, Messenger, and a very mature ad auction system. Other social networks either never reached the same scale, had weaker targeting data, or struggled to turn engagement into an advertiser product that could reliably produce measurable sales.

Do you mean profitability compared with platforms like Twitter/X, Reddit, and Snapchat? I ask because each of those had very different problems with monetization, so the comparison gets pretty interesting depending on which networks you have in mind.
 
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