Meta's $16 Billion Advertising Revenue in 2024

Meta's Advertising Revenues and Fraud Allegations

Meta Platforms Inc. (NASDAQ: META) has revealed through leaked internal documents that it anticipates approximately $16 billion in revenue from fraudulent advertisements and prohibited products for the year 2024. This amount represents about 10% of the company's total revenue.

According to the documents, Meta has been ineffective in preventing billions of users from exposure to fraudulent e-commerce and investment schemes, illegal online casinos, and the sale of banned medical products. Documents dated December 2024 indicate that the company estimates it shows 15 billion “high-risk” fraudulent advertisements daily.

Another internal document from the company reported that these advertisements account for approximately $7 billion of Meta's annual revenue. According to Reuters, even though the company was able to identify users known for fraud, it did not act quickly. Some high spenders, referred to as “High-Value Accounts,” could receive over 500 warnings before being closed.

Meta's ad personalization system suggests that users who click on fraudulent ads are likely to see more fraudulent advertisements. A company spokesperson stated that the 10% revenue estimate was “roughly calculated” and “overly inclusive,” and not an exact figure.

Additionally, Meta claimed to be actively combating fraud and deception, noting that user reports of fraudulent advertisements have decreased by more than 50% over the past 15 months. However, these statements could negatively impact the company’s reputation and user trust due to its inability to effectively regulate fraudulent advertisements. The significant contribution of these advertisements to Meta's revenue could raise questions regarding the company's commitment to user safety.

The slow approach towards “High-Value Accounts” may create the impression that these activities are indirectly endorsed. Despite claiming a reduction in user complaints, the leaked documents reveal a different reality.