The project was launched in 2004 by Mark Zuckerberg, Eduardo Saverin, Chris Hughes, and Dustin Moskowitz in a Harvard University dormitory and was initially targeted at high school and college students. It attracted 7 million users in its first two years of existence. Zuckerberg turned down a $1 billion buyout offer from Yahoo Inc. in 2006 until the company went public in 2012. This initial public offering (IPO) was one of the largest but disappointing technology IPOs of the past 25 years, raising $16 billion.
As of January 24, 2021, Facebook has a market capitalization of $781 billion, has soared to more than 2.74 billion active monthly users, and mobile advertising accounts for 98.5% of the company's total revenue in 2019.Facebook's competitive advantage stems from its huge number of monthly active users (MAUs) compared to LinkedIn (250 million MAUs) and Twitter (330 million MAUs).
The ruler of social media distances itself from its competitors for the following reasons.
Due to the sheer number of users on the platform, it would be remiss of a company to abandon digital marketing altogether. Small businesses make up the vast majority of Facebook's 8 million advertisers. facebook earned $17 billion in advertising revenue in 2010 Q3 2020. The social network accounts for 22% of the global online advertising market.
Facebook has an overabundance of user data and is highly efficient at targeted marketing. Extensive advertising targeting men, women, or baby boomers have given way to a customized approach. facebook's ubiquitous single sign-in box across third-party sites allows marketers to track purchases and other meaningful interactions.
That said, in 2017, political consulting and strategic communications firm Cambridge Analytica collected the personal information of up to 87 million users on Facebook, a company that has come under scrutiny for a data privacy scandal. Cambridge Analytica was a staunch supporter of the UK's 2016 campaign to withdraw from the European Union and Donald Trump's presidential campaign.
Nevertheless, Facebook remains resilient as mobile advertising continues to grow; the
With the launch of the Messenger app in 2013, mobile apps have accounted for a large part of Facebook's rapid growth. As of 2019, Messenger has more than 1.3 billion monthly users. Instead of competing with mobile market rivals WhatsApp, Facebook gained Its competitors pocketed another billion users in 2014 for $19 billion.
People who own smartphones typically spend 4 to 5 hours a day on them. The typical smartphone has more than 30 apps on it, with three of them accounting for 80% of daily use. The most popular app among all users worldwide is Facebook.
Facebook defines "engagement rate" as the percentage of people who view a post and like, share, react or comment on it. In other words, when a large number of users respond in a targeted way, the post has some meaningful impact on the psychology of the audience.
Facebook has an overabundance of user data and is a highly efficient marketing strategy Evolution.
The Bottom Line
Facebook is at the top of the social media game because its platform caters to a wide variety of people and incorporates many different aspects of media, from photos to messengers to text. It is not as restricted as LinkedIn and Twitter, which are often targeted at specific groups of people.
Because of its broad appeal, Facebook attracts a sizable user base, which translates into advertising revenue as companies look to spend their advertising budgets on the highest-rated platforms, and with 2.74 billion active users per month, it's hard to top Facebook.