How Does Facebook Generate Revenue?


Quick Answer

Facebook generates revenue from advertising as well as from selling Farmville credits and other promotions, according to finance expert Barry Ritholtz. Of the $3.2 billion of revenue Facebook earned in the third quarter of 2014, advertising represented $2.96 billion, as reported by Investopedia.

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Full Answer

Facebook sells several different forms of advertising on the website. When users access a Facebook page, they see the advertisements; if users click on those advertisements, Facebook generates revenue. Some of Facebook's largest advertisers include Ford Motor Company, HSBC bank, Starbucks, Nike, JP Morgan Chase, Nestle and Samsung. The advertising opportunities available through Facebook include sidebar ads, promoted posts and sponsored stories.

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