Meta

What does Meta live with

Meta which was previously called Facebook, is a traditional social media company. Facebook is obviously their product once shocking the world. It brought brandnew social communication approach to the public. However, as all the other internet companies, it had headache on how to monetize what they have. By checking Meta’s earning report of 2021 and 2022, Advertisement took 99% of it’s income. It seems internet industry can’t find a monetization solution better than advertisement. Online advertisement is eventually a model of demand and supply. Apparently, Meta is on the supply side. Meta advertisement inventory can be devided into two categories, which are O&O inventory and 3rd party traffic. Meta now is monetizing Facebook, Instagram and Whatsapp. These apps are owned and operated by Meta. The other set is the traffic on the Facebook Audience Network. According to experience of other similar Ad platforms. O&O traffic and 3rd party traffic are taking different position within an online advertising company. Mostly, O&O traffic plays the role of profit generator, while 3rd party traffic plays the role of scale expander.Two types of traffic are working like gears matching and running the whole machine. Without O&O traffic, companies don’t have capability to build Ad networks from scratch. Withouth extenral 3rd party traffic, O&O traffic will be priced higher and higher and it will result in performance downgrade and advertiser leaving.