Facebook Ad Revenue

Meta (Facebook) Ad Revenues$39.94B$55B$70B$84.8B$115.65B
Meta Revenue Breakdown2021%2020%
Other revenue (payments and fees)$721M0.6%$657M0.8%
Reality Labs (primarily sales of Oculus, now called Meta Quest)$2.27B1.9%$1.139B1.3%
In 2021, advertising revenues represented 97.5% of the total revenues for Facebook (now Meta), with $114.9 billion in revenues, 2021. Other revenues, comparing payments and fees were $721 million in 2021 or 0.6% of the total revenues. While Reality Labs (primarily sales of Oculus, rebranded as Meta Quest) amounted to $2.27 billion, or 1.9% of the total revenues, in 2021.
2021 vs. 2020
N. of ads delivered growth rate10%
Price per ad increase24%
As per the FourWeekMBA Analysis, Facebook advertising revenues, in 2021, grew, thanks to an increased number of ads delivered. In fact, in 2021, 10% more ads were served through Facebook’s products, and a price per ad increase of 24%. Therefore, more ads served, and a higher cost per ad drove the revenues in 2021. Ads revenues growth was also driven by mobile devices.
US & Canada51,54143.71%
Europe (includes Russia, Turkey)29,05724.64%
Rest of the World (includes Africa, Latin America, and the Middle East)10,5928.98%
The North American area still represents the most important geographic segment, when it comes to revenues. Indeed, 43.71% of the revenues came from US & Canada.
Key Facts
FoundersMark Zuckerberg, Andrew McCollum, Dustin Moskovitz, Eduardo Saverin, Chris Hughes
Year FoundedFebruary 2004, Cambridge, MA
Year of IPOMay 18, 2012
IPO Price$38.00
Market Cap at IPO$104 Billion
Total Revenues at IPO$3.7 Billion by 2011, prior to the IPO
Total Revenues in 2021$117.9 Billion
Changed nameMeta, in October 2021
Employees71,970 employees, globally, as of December 31, 2021
Revenues per Employee$1,642,693.97
Who owns Meta?Mark Zuckerberg is the primary individual shareholder, with 81.7% of Class B shares, and 52.9% of the total voting power
Founded in February 2004, in Cambridge, MA, by Mark Zuckerberg, Andrew McCollum, Dustin Moskovitz, Eduardo Saverin, and Chris Hughes, Facebook IPOed on May 18, 2012, at a price of $38 per share, and a market cap of $104 billion and total revenues for $3.7 billion in 2011, prior to the IPO. In 2021, Facebook generated over $117 billion in revenues, and it changed its name in October 2021, to Meta. With 71,970 employees, Meta generated $1,642,694 per employee. Mark Zuckerberg is the primary individual shareholder, with 81.7% of Class B shares, and 52.9% of the total voting power.
The digital advertising industry has become a multi-billion industry dominated by a few key tech players. The industry’s advertising dollars are also fragmented across several small players and publishers across the web. Most of it is consolidated within brands like Google, YouTube, Facebook, Instagram, Amazon, Bing, Twitter, TikTok, which is growing very quickly, and Pinterest.

Three core changes are impacting and reshaping the whole digital advertising industry: 

Cookieless web 

The cookie has represented the enabler of the digital advertising industry, enabling tech companies to track the user journey across several platforms, thus making it possible to build the whole attribution machine.

Indeed, without attribution (the ability to say how a lead was generated), there would not be a digital advertising industry in the first place.

Yet, the cookie is getting retired. Google has planned the retirement of the cookie to its Chrome browser, thus determining the end of an era. 

iOS privacy changes

Apple forced, in 2021, a privacy change policy, which makes the opt-in to advertising from third-party apps, like Facebook, explicit.

This means Apple will ask users whether they want to be tracked.

As you can imagine, this is already having a massive impact on Facebook’s business model, which had to rebrand as Meta and invest billions into VR. 

Privacy from regulation

Regulators are also pushing for more and more privacy within various platforms.

This makes it much harder to track users and thus makes the whole digital advertising machine lose efficacy. 

While in 2021, Google and Facebook still peaked in terms of revenues.


By 2022, with a changed market context, for the first time, Facebook’s revenues slew down, forcing the company into mass layoffs!


Read Also: Facebook Business Model

Related Business Models

Mark Zuckerberg Empire

Mark Zuckerberg is the principal shareholder of the company. Not only he retains ownership and control of the company. Facebook, like Google, has issued two kinds of common stocks, Class A and Class B. Where the holders of Class B common stocks are entitled to ten votes per share, and holders of our Class A common stocks are entitled to one vote per share. Mark Zuckerberg has a total voting power of 57.9%. 

Attention-Merchants Business Model

In an asymmetric business model, the organization doesn’t monetize the user directly. Still, it leverages the data users provide and technology, thus having a key customer pay to sustain the core asset. For example, Google makes money by leveraging users’ data and its algorithms sold to advertisers for visibility. This is how attention merchants make monetize their business models.

Asymmetric Business Model

In an asymmetric business model, the organization doesn’t monetize the user directly. Still, it leverages the data users provide and technology, thus having a key customer pay to sustain the core asset. For example, Google makes money by leveraging users’ data and its algorithms sold to advertisers for visibility.

Facebook Business Model

Facebook, the main product of Meta, is an attention merchant. As such, its algorithms condense the attention of over 2.91 billion monthly active users as of June 2021. Meta generated $117.9 billion in revenues, in 2021, of which $114.9 billion was from advertising (97.4% of the total revenues) and over $2.2 billion from Reality Labs (the augmented and virtual reality products arm). 

Facebook ARPU

The ARPU, or average revenue per user, is a key metric to track the success of Facebook – now Meta – family of products. For instance, by the end of 2021, Meta’s ARPU worldwide was $11.57. While in US & Canada, it was $60.57, in Europe, it was $19.68, in Asia $4.89, and in the rest of the world, it was $3.43.

Facebook Organizational Structure

Facebook is characterized by a multi-faceted matrix organizational structure. The company utilizes a flat organizational structure in combination with corporate function-based teams and product-based or geographic divisions. The flat organizational structure is organized around the leadership of Mark Zuckerberg and the key executives around him. On the other hand, the function-based teams are based on the main corporate functions (like HR, product management, investor relations, and so on).

Metaverse Supply Chain


Google Business Model

A hidden revenue business model is a pattern for revenue generation that keeps users out of the equation, so they don’t pay for the service or product offered. For instance, Google’s users don’t pay for the search engine. Instead, the revenue streams come from advertising money spent by businesses bidding on keywords.

TikTok Business Model

TikTok is a Chinese creative social media platform driven by short-form video content enabling users to interact and generate content at scale. TikTok primarily makes money through advertising, and it generated $4.6 billion in advertising revenues in 2021, thus making it among the most popular attention-based business models or attention merchants.

Instagram Business Model

Instagram makes money via visual advertising. As part of Facebook products, the company generates revenues for Facebook Inc.’s overall business model. Acquired by Facebook for a billion dollars in 2012, today Instagram is integrated into the overall Facebook business strategy. In 2018, Instagram founders, Kevin Systrom and Mike Krieger left the company, as Facebook pushed toward tighter integration of the two platforms.

YouTube Business Model

YouTube was acquired for almost $1.7 billion in 2006 by Google. It makes money through advertising and subscription revenues. YouTube advertising network is part of Google Ads, and it generated more than $28B in revenue by 2021. YouTube also makes money with its paid memberships and premium content.

Twitter Business Model

Twitter makes money in two ways: advertising and data licensing. In 2021, Twitter generated $4.5 billion from advertising and $570 million from data licensing. While Twitter generated $5 billion in total revenues, it lost 221 million.
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