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?
If you’re really curious about this you can look into Meta’s shareholder statements. They’re a publicly traded company so these documents are available for everyone to see. But, yeah, long story short, it’s ads. Things like sponsored content (paying to push posts to people) is essentially just the platform itself doing it instead of using a third party.
For companies that aren’t publicly traded it’s trickier. A lot of privately traded companies are being propped up by VC funding. Many times they’ll operate at a loss to gain more users then worry about how to become profitable later. Bluesky is definitely such an example right now. They don’t run ads and don’t get money from users.
Around 97% of Meta’s revenue is from ads. 2.2% is from Reality Labs - things like Meta Quest headsets and Meta Ray Ban smart glasses. The remaining <0.7% is small things like fees from Facebook Marketplace (for orders that are shipped), a cut of credits for Facebook games (apparently that’s still a thing?), etc.
Meta is a public company so all this data is public. See slide #4 in the most recent earnings presentation slides here: https://investor.atmeta.com/investor-events/event-details/2025/Q4-2024-Earnings-Call/default.aspx
Ads and selling your personal data. In twitter’s case elon musk also uses it to influence politics and amplify his own opinion.
Some also have subscriptions.
This is 100% correct but just wanted to say when I see an admin account with the little red A. I always think it’s the Scarlett Letter and giggle.
selling your personal data
The major tech companies like Google, Facebook, etc don’t sell user data. That’s a common misconception. The data is what makes the company valuable - nobody else has it. It wouldn’t make sense for them to sell it, because they’d lose their competitive advantage over other companies.
Advertisers can target ads based on the data, but the advertiser never actually sees user data.
Yea, I mostly meant selling your data to advertisers, but in the case of big companies the ad platform is ofcourse internal.
It’s not a misconception, it’s just how people say what’s happening. They’re basically selling their ability to make a profile of you based on your data. It’s just colloquially said as “selling your data.”
Some people think the big tech companies literally sell your data though, so IMO it’s important to clarify.
There are companies that do that though, like Acxiom, LiveRamp, CoreLogic, etc. With Acxiom at least, you can buy lists like “high net worth individuals who are likely to buy a new car in the next 6 months” and get a list of names, phone numbers, and email addresses, based on data they’ve collected from both public and private sources.
Those data broker companies collect data from things like supermarket loyalty programs (to determine consumer spending patterns) and other companies who are willing to sell data about you, and compile them into profiles.
