Does Facebook make money if I simply load and display ads on my Profile page, or only if I click on an ad?
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I'm wondering how Facebook makes money, and I've read that it's by selling ads but the information I read didn't explain further than that.
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Answer:
The answer is both - they sell ads by CPM (based on impressions) and CPC (based on users clicking on them). The advertiser can decide which form of ads they want to show/pay for.
Jamie Beckland at Quora Visit the source
Other answers
Also, Facebook indirectly makes money from your participation on their platform, in two ways: 1) The more accounts to which they can lay claim, the more money they can demand from advertisers. 2) Depending upon your privacy settings, you may share market research data about your "friends" with Facebook & apps that run on the Facebook platform. More data = increased value = higher cost of advertising.
Joe Robb
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