Facebook’s (NASDAQ:FB) creation of “social networks” redefined online advertising. For the first time, a multi-billion user community could safely and voluntarily share information about their interests, and marketers could offer them products relevant to those interests.
Conversion rates shot through the roof. Facebook’s targeted advertising gave businesses information about their users so they could know what they wanted to buy, and it worked incredibly well. The social network king’s ad revenue nearly quadrupled in three years, from $7 billion in 2013 to $27 billion in 2016. The company continues to expand its dominant targeted advertising network, with membership surging on two of their other platforms: Messenger and WhatsApp.
