A growing share of Facebook ads are going to other channels to generate revenue, but a growing number of people are getting no compensation for those ads, according to a new study.
The study, which was conducted by data analytics firm PwC, found that only 16% of the ad revenue Facebook sees in the US goes to the network’s ad buyers, but that more than a third goes to its affiliate partners.
The research comes as Facebook continues to grapple with the fallout from the US presidential election and the subsequent resignation of CEO Mark Zuckerberg.
PwB found that nearly two-thirds of the revenue Facebook saw from its affiliates in the U.S. goes to Facebook’s partners, with a further two-third of revenue coming from its advertisers.
Facebook’s revenue from the affiliate partners is now the highest in the company’s history, according the PwA report.
That was a significant shift from the past, when the company was spending most of its ad revenue on partners.
But PwP found that the trend was continuing in 2017, as Facebook saw a steady increase in revenue from its partner networks.
In 2016, the company reported that it earned $5.6 billion from its affiliate networks, and in 2017 it reported that the company earned $8.4 billion.
In 2017, PwI also found that Facebook’s share of ad revenue from partner networks was more than half of what it was in 2016.
PpwB concluded that the increased spending by Facebook on affiliate partners, along with its continued reliance on affiliate networks for most of Facebook’s advertising revenue, is largely due to the fact that its revenue from affiliate partners grew from less than 20% in 2016 to more than 40% in 2017.
“As Facebook has become more reliant on these networks, the growth in the amount of money paid to these partners has continued to grow,” PpWB chief research officer Peter Jorgensen said in a statement.
“This is why we are seeing a steady and continuing increase in the number of ad deals between the company and its affiliate network partners.”