The Intelligence from The Economist Good news, ad news: Facebook’s big bucks and bets
Jul 29, 2021
Ludwig Ziegler, U.S. technology editor for The Economist, discusses Facebook's impressive profits and its ambitious leap into the metaverse, sparking discussions on community versus profit. Meanwhile, Michael Reid, Senior editor for Latin America, dives into the challenges facing Peru's newly elected, inexperienced president, Pedro Castillo, as he navigates a polarized Congress and public skepticism. They also touch on the publishing industry's efforts to diversify romance literature, reflecting broader cultural changes.
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Facebook's Two Faces
- Facebook is a controversial company disliked by politicians for misinformation issues.
- Yet, it remains highly successful, earning billions from advertising.
Facebook's Revenue Model
- Facebook earns almost all its revenue from advertising, about $8 per user annually.
- It collects user data extensively, both within its own platforms and across the internet via tools like the Facebook pixel.
Pandemic Impact on Facebook
- The pandemic increased time spent on Facebook and online advertising by businesses.
- Physical store closures and new online businesses drove this trend.