Business & Finance

Facebook Reports An Incredible Increase In Gross Advertising Revenue in India This Year

Facebook India recently reported a massive increase in its gross advertising revenue in India. Facebook ads revenue 2021 has reported an incredible growth of 41%, which could be because of the Pandemic. This online services giant did a regulatory filing with a net profit as high as Rs. 128 crores in the year 2020-21. The Facebook India revenue was Rs. 1481 crore, on which this regulatory filing was done.  The model on which Facebook works is the reseller model. In this model, a company buys varied inventory globally from its subsidiaries and sells it locally to its clients. So, in this case, Facebook was buying inventories globally in order to sell them to Indian clients.  Facebook India gross ad revenue comes from the advertisements they display on its various platforms such as Messenger, Instagram, Facebook, and any other third-party mobile app or website affiliated with it. These are impression-based ads that are displayed on all these social media platforms. The agency model followed by Facebook India lets it make commissions through reselling ads that they buy from Facebook Ireland and sell it to Indian clients.  In the financial year of 2020-21, this giant in online services has reported an increase only through advertisement. It is important to note that this is also the year when the Pandemic hit the entire world. So, this can be crucial in the overall increase in the profits that come in through ads. The world has definitely changed massively since the advent of the Pandemic in the year 2020-21.  This increase in the advertisement revenue of Facebook points to an increasing trend towards how social media influences people greatly. During the pandemic year, there was also an increase in the number of people who use Facebook and other social media platforms. Finally, the massive increase in the revenues generated by Facebook ads clearly shows the change in the trend. It also highlights how people are getting more and more influenced by the ads that they see on the social media platforms that they use. Hence, it is most likely that this trend will continue, and the influence of Facebook ads will increase even more in the future. We will find that out when we see the profits made by this giant next year.

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