The Facebook business model – you are the product


This challenge was introduced by Kristin Biesenbender, Cora Wacker & Timm Leinker, editors at Wirtschaftsdienst at the ZBW Leibniz Information Centre for Economics



Many of us regularly spend time on Facebook and spend time using other social media. However, hardly anyone asks how Facebook makes its money. Social media actually mainly earns money through advertising. Facebook has become one of the most valuable companies in the world, and it uses this business model. Facebook knows a lot about its two billion-plus users and is getting better at making money from this. What does this mean for users? Is it a problem that Facebook effectively has no competition?

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