American online social network service provider, Facebook, reported $26,998 million in advertising revenue in Q1 2022, and in Q4 2021 Facebook had $33,671 million in advertising revenue.
In the fiscal year 2021, advertising revenue increased owing to increased social media usage during the COVID-19 pandemic, during the year Facebook’s increased user engagement attracted more marketers onto its social media platform, thus bringing in more advertisement revenue for Facebook.
The number of ads Facebook shows is subject to methodological changes as it continues to evolve its ad business and the structure of its ad products. Apple introduced new policies/restrictions on its ad targeting and measurement tools in 2021, thus negatively impacting Facebook's ad revenue in the first quarter of 2022. Facebook estimates that these and further restrictions on its ad targeting and measurement technologies brought on by modifications to the regulatory environment as well as third-party mobile operating systems will continue to negatively impact future advertising revenue growth.
Advertising revenues:
Facebook’s advertising revenue is generated by displaying ads on products on Facebook, Instagram, Messenger, and third-party affiliated websites or mobile applications. Facebook generates majority of its revenue from advertising. Marketers pay for ad products either directly or through their relationships with advertising agencies or resellers, based on the number of impressions delivered or the number of actions, such as clicks, taken by users.
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