this post was submitted on 16 Feb 2025
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What do people who own social media platforms gain from it and how? Where do they get the revenue from? I know that ads make up some part of it but is the revenue generated from ads enough?

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[โ€“] 737@lemmy.blahaj.zone 7 points 1 week ago (3 children)
[โ€“] Corkyskog@sh.itjust.works 1 points 1 week ago (2 children)

How do ads generate enough revenue to sustain themselves?

[โ€“] sibachian@lemmy.ml 1 points 1 week ago

most businesses have to run ads to turn a profit. part of the equation of every sale you make comes down to a finely balanced cost of ads vs the profit on sales of the product or service, if the cost of advertising is higher than the product, it's a product that basically just won't enter the market (yay capitalism). so ads companies like google or facebook are essentially forcing most businesses around the globe to pay them a percentage on each and every product or service sold.

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