“Facebook profit hits an all-time high, unaffected by recent scandals—so far.”
“Twitter posts record $100 million profit but loses 1 million users.”
The above are recent headlines from top publications about the profitability of two of the biggest social media networks’ advertising business models.
It gets interesting. The following screenshot (courtesy of Statista) shows Instagram’s revenue from 2015 projected through 2021.
With social media sites posting record profits every quarter, and with projections of an increase in their revenue year over year—based on the advertising business model they rely on—certainly, the businesses that advertise with them must be making bank? Not necessarily.
According to recent research from MDG Advertising, only 20 percent of businesses are able to measure the impact of social media on their bottom lines.