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There are many social media platforms available today. What are the top two primary ways that social media platforms generate revenue? (Select two.)answerTargeted adsUsage feesSelling user-generated data to other companiesMembership feesContent

Question

There are many social media platforms available today. What are the top two primary ways that social media platforms generate revenue? (Select two.)answerTargeted adsUsage feesSelling user-generated data to other companiesMembership feesContent

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Solution

The top two primary ways that social media platforms generate revenue are:

  1. Targeted Ads: Social media platforms collect data about their users' interests, behaviors, and demographics. They then use this data to allow advertisers to create targeted ads. These ads are designed to be relevant to specific users, increasing the likelihood that they will be interested in the product or service being advertised. This is a major source of revenue for many social media platforms.

  2. Selling User-Generated Data to Other Companies: Some social media platforms also generate revenue by selling data that they collect from their users. This data can be very valuable to other companies, who can use it to better understand their target audience and improve their own marketing strategies.

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