Advertising on Facebook
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Facebook generates revenue primarily through advertisements. Advertisers pay Facebook using different models like cost per click (CPC), cost per action (CPA), cost per install (CPI), or cost per thousand impressions (CPM). Whether advertisements on Facebook are effective depends on properly targeting the desired audience based on factors like age, gender, and location. Facebook was founded in 2004 by Mark Zuckerberg and generated an estimated $800 billion in revenue in 2009.
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- 5. *Table courtesy of insidefacebook.com +/- Advertisers +/1 Publishers CPC ( Cost Per Click) Pay for Traffic-/ May be abused Easy Goal/ Drive more clicks CPA (Cost Per Action) Pay for what you want directly Sometimes annoying Not all traffic converts CPI (Cost Per Install) Pay for what you want directly Fits well in social network Not all traffic converts CPM (Cost Per Thousand) Advertisers buy high value inventory/ Encourages Abuse Developers get a steady stream of income High quality brand advertising
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