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  • Meta: The Money Machine 🤑

Meta: The Money Machine 🤑

PLUS: Microsoft Bing - The B is for Billions 🔎

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Here's what we're serving up today:

  • Meta: The Money Machine 🤑

  • Microsoft Bing - The B is for Billions 🔎

Meta: The Money Machine 🤑

There is no denying that Zuck is the King of Attention.

The man has built the largest social network on the planet where Meta’s Family of Apps, which includes Facebook, Instagram and WhatsApp boasts a monstrous 3B monthly active users (MAU). 

That’s like getting almost half the world’s population to check in regularly. 

And it isn’t just sheer user scale that Meta has been able to achieve. It’s about big bucks too. 

Average Revenue Per User (ARPU) is a key metric that is used in evaluating social media platform performance.

Zuck and Co. are able to squeeze out much more money per user than their other social media peers. 

One of the most interesting cases to consider here is that of Reddit’s. The company only recently went public and mentioned in their S-1 that they are relatively early in their advertising journey in terms of the tools they have to build. 

While they’ve been in this biz since 2006, they only meaningfully started building out their ad-tech platform in 2018.

Reddit as a platform is built quite differently compared to its social media peers. Instead of browsing selfies or looking through aesthetically pleasing handmade gifts, Reddit users visit hyper-specific pages like r/BoneBroth - which could be an appealing ad buy for well … a company that makes bone broth.

Reddit visits are so intentional that people often tack “Reddit” onto their Google searches to specifically get answers from the social media platform. 

This unique organization into communities and such high-intent visitors should theoretically be an advertisers dream - high intent users ready to gobble up relevant ads. But there’s a catch. 

A sizable chunk of Redditors prefer lurking from the shadows, aka using the platform without logging in. This stealthy behavior means less data for Reddit to crunch and sell. 

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Microsoft Bing - The B is for Billions 🔎

It’s no news that Microsoft has been on a tear recently. The company has been riding high on a cloud of success and has tried to position itself as the leader in AI after arguably kickstarting the genAI gold-rush with its investment in OpenAI.

Microsoft’s cloud and Office 365 unit have benefitted greatly from the AI boost.

But not all of its AI products have been a hit.

We’re talking about Microsoft Bing.

Sometimes labeled “a joke” in the tech world - with reports suggesting that the most-searched term on Bing is “Google” - Microsoft’s search engine has long been in a distant second place in search. 

But no matter how hard Bing gets trolled, it’s Microsoft that gets the last laugh, as Bing still hauls in billions of dollars every year. 

B is for Billions

Care to take a guess how much revenue Bing brought in just the 1st quarter of 2024? It was … checks notes … $3.1 Billion.

Bing, just like Google, earns money primarily through search advertising. And it has been growing consistently over the past years. 

To put things more into perspective, Bing’s Q1 2024 annual revenue was more than Snap, Pinterest, NY Times and Instacart combined.

Not everything is rainbows and sunshine though. When Microsoft unleashed the power of ChatGPT into the world last year, their starting point wasn’t AI in Azure or Office 365.

It was AI in Bing - a promise to redefine search and take on the search Goliath - Google. 

Fast forward a year and despite its revenue growth, Bing’s market share has barely budged, inching up a modest 1%.

However, Bing still enjoys a clear lead for 2nd position. And because the search engine market is such a lucrative business, Microsoft previously stated that even a 1 percentage point gain could translate to an additional $2B in search revenue

So next time you hear someone mocking Bing, just remember: it might not be the life of the party, but it sure knows how to pay the tab.

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