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Senator: If somebody advertises on facebook and somebody purchases something. Does facebook get a percentage or any kind of fee associated with any kind of succ
by p5378b 9y ago
Senator: If somebody advertises on facebook and somebody purchases something. Does facebook get a percentage or any kind of fee associated with any kind of successful purchase from the advertiser.
Zuckerberg: The way that the system works is advertisers bid how much it's worth it to them to show an ad or when an action happens. So, it's not that we would get a percentage of the sale but... let's just use an example. Lets say you're an app developer and your goal is you want to get more people to install your app. You could bid in the ad system and say that I will pay $3 anytime someone installs this app and then we basically calculate, on our side, which ads are going to be relevant for people and we have an incentive to show people ads that are going to be relevant because we only get paid when it delivers a business result and that's how the system works.