It’s pretty hard to exaggerate the influence Facebook has built since it launched in 2004. Whether used for creating envy between “friends” or swaying political discourse, Facebook’s influence plays a huge roll.All of this essentially boils down to the currency of the “new media landscape”: attention.One study by marketing agency Mediakix found that, on average, Facebook users spend 35 minutes each day on the platform — adding up to almost five and a half years of your life. That’s more time than you will spend socializing (1 year 3 months) or eating and drinking (3 years 5 months).With Facebook expected to hit 2 billion users in 2017, this ability to hold our attention converts to truly impressive earnings. In the fourth quarter of 2016, the company’s revenue was a whopping $8.81 billion, with $3.56 billion of that being profits.And with a reported 1.86 billion monthly users, Facebook generates $1.57 of revenue per user per month. Not bad. Especially with a userbase that’s growing by tens of millions each month.But where exactly does all this money come from?
How Facebook Makes Money Off You: The Economics of Social Networks