What Does Meta Do?

The Advertising Powerhouse

While users enjoy Meta’s apps for free, the real money comes from advertising. Meta runs one of the most sophisticated ad networks in existence, rivaled only by Google. Businesses of all sizes—from small local shops to global corporations—pay to show their ads across Facebook, Instagram, Messenger, and WhatsApp. The ability to reach billions of people in highly targeted ways makes Meta’s platforms essential for marketers. Without ads, Meta wouldn’t be one of the most valuable companies in the world.

What sets Meta apart is its use of data-driven personalization. With information on user interests, demographics, and behaviors, Meta can help advertisers reach the exact people most likely to respond. For instance, a small bakery could advertise to people within five miles who like cupcakes, while a global brand could launch a campaign reaching millions across continents. These tools make Meta indispensable for businesses trying to maximize their return on investment. Few other companies offer this level of precision at such a massive scale.

Advertising revenue accounts for over 95% of Meta’s income, demonstrating how central it is to the company’s business model. In 2023 alone, Meta generated over $130 billion from advertising, making it one of the top digital ad companies worldwide. This revenue model also explains why Meta invests heavily in keeping users engaged across its platforms—more time spent online means more ad impressions. Advertising isn’t just a side business for Meta; it is the very engine that powers its innovation.

This dependence on advertising also comes with challenges. Privacy changes from Apple’s iOS updates have impacted ad targeting, forcing Meta to invest in new technologies to protect its revenue. Regulators have also scrutinized how much user data Meta collects for ads, sparking debates over online privacy. Despite these obstacles, Meta continues to adapt and maintain its dominance in the global advertising market. Its unmatched scale ensures it will remain a go-to platform for digital marketers for years to come.

Ultimately, advertising is not only how Meta makes money but also how it influences the global economy. Millions of businesses rely on its ad network to survive, and entire industries have been built around optimizing Meta campaigns. This makes Meta not just a tech company but also one of the most critical drivers of modern commerce.

Artificial Intelligence and Content Moderation

Meta isn’t just a social networking company; it’s also a leader in artificial intelligence (AI). AI powers nearly every aspect of its platforms, from the algorithms that determine what content you see to the tools that keep harmful material off the apps. Without AI, it would be impossible for Meta to manage the sheer scale of its platforms, where billions of posts, photos, and videos are uploaded daily. This technology ensures users stay engaged while advertisers get maximum value.

One of AI’s biggest roles is in content recommendation. Facebook’s News Feed, Instagram’s Explore tab, and Reels all rely on machine learning to serve content that users are likely to enjoy. By analyzing past behavior, AI can predict what users might click on, ensuring they spend more time on the platform. This personalized approach is one of the reasons Meta apps remain so addictive. It also makes advertising more effective, since ads can be matched with relevant users.

AI is equally critical for content moderation. Harmful content such as hate speech, spam, and misinformation can spread rapidly online. Meta uses AI models to detect and remove such material before humans even see it. While not perfect, these systems have dramatically improved safety and reduced harmful exposure for users. The challenge is balancing free expression with the need to prevent abuse—a balance Meta continues to refine.

Another important area is language translation. Meta’s platforms connect people across the globe, and AI-powered translation tools allow users to communicate without barriers. Automatic translation ensures that posts, ads, and messages are accessible to people regardless of language. This technology helps Meta maintain its global reach, making it an indispensable part of international communication.

Beyond its consumer-facing applications, Meta also invests in fundamental AI research through its FAIR (Facebook AI Research) division. This unit pushes the boundaries of machine learning, natural language processing, and computer vision. These advances don’t just improve Meta’s apps; they also feed into larger projects like the metaverse. By staying at the forefront of AI, Meta ensures its platforms remain competitive while shaping the future of digital interaction.

Building the Metaverse

Perhaps the most ambitious part of Meta’s vision is its commitment to building the metaverse. Mark Zuckerberg describes it as “the next chapter of the internet,” a virtual shared space where the digital and physical worlds blend together. Unlike traditional apps, the metaverse is designed to be immersive, with people represented as avatars in 3D spaces where they can work, socialize, shop, and play. This idea may sound futuristic, but Meta is already investing billions each year to make it a reality.

At the core of Meta’s metaverse push is Reality Labs, the division dedicated to developing virtual reality (VR) and augmented reality (AR) technologies. This group creates the hardware, software, and tools that will power immersive experiences. The most recognizable product is the Meta Quest VR headset, which lets users play games, attend virtual concerts, and even collaborate in 3D workspaces. By making VR headsets more affordable and user-friendly, Meta hopes to drive mass adoption.

In addition to VR, Meta is also exploring augmented reality. Its work on AR glasses could one day allow people to overlay digital information directly onto the physical world, blending online and offline interactions seamlessly. Imagine walking into a store and seeing product reviews hover above items, or attending a virtual meeting where coworkers appear in your living room. These are the types of experiences Meta wants to bring to life.

Meta has also developed Horizon Worlds, a social VR platform where users can build and explore virtual environments. It serves as an early example of what the metaverse could become, with people gathering in digital spaces to interact, play games, and attend events. While Horizon Worlds is still relatively niche, it demonstrates Meta’s long-term vision of creating shared virtual communities.

The company faces significant challenges, including the cost of developing cutting-edge hardware and skepticism about whether consumers actually want a metaverse. But for Zuckerberg, this is a long-term bet similar to how Facebook bet on mobile before it became mainstream. If Meta succeeds, it could redefine not just entertainment, but also work, education, and commerce.

Meta’s Hardware Efforts

Although most people think of Meta as a software company, it has also become a serious hardware developer. These devices are essential to the company’s metaverse ambitions, but they also extend Meta’s influence into consumers’ physical lives. Unlike traditional tech firms that simply rely on platforms, Meta wants to own both the software and the devices people use.

The Meta Quest line of VR headsets (previously Oculus) is the most well-known. The Quest 2, Quest Pro, and Quest 3 provide increasingly sophisticated virtual reality experiences, from gaming to professional collaboration. By offering standalone VR headsets that don’t require a high-powered PC, Meta has helped make virtual reality more accessible to the general public. These devices are central to its push for immersive technology.

Meta also partnered with Ray-Ban to release Ray-Ban Meta Smart Glasses. These glasses look like ordinary sunglasses but include cameras, microphones, and voice control features. They allow users to capture photos and videos hands-free, listen to music, and even access AI assistants. While still early in development, smart glasses represent a key stepping stone toward mainstream augmented reality.

Another hardware project was the Portal line of video-calling devices. Designed to make video chat more natural, Portal devices automatically followed the speaker and supported integration with apps like Zoom. However, Meta eventually phased them out in 2023 to concentrate resources on VR and AR. This illustrates how the company is willing to cut less successful products in order to focus on its biggest bets.

Together, these hardware efforts demonstrate Meta’s willingness to compete with companies like Apple, Microsoft, and Google not just in software but in physical devices. Hardware allows Meta to control the entire user experience and collect data more directly. While success isn’t guaranteed, these devices are essential to Meta’s vision of creating immersive and seamless digital ecosystems.

Privacy, Data, and Controversy

No discussion of Meta is complete without addressing its controversies. The company has faced years of criticism over how it handles user data, moderates content, and impacts society. While its platforms connect people around the world, they also raise difficult questions about privacy, safety, and responsibility. One of the biggest scandals was the Cambridge Analytica incident in 2018, when it was revealed that millions of Facebook users’ data had been improperly harvested for political advertising. This sparked a global debate about how social media platforms collect and use personal information. Since then, Meta has been under near-constant scrutiny from governments, regulators, and advocacy groups.

Another ongoing issue is the spread of misinformation and harmful content. From election interference to conspiracy theories, Meta platforms have been used to amplify misleading information. The company has invested heavily in AI moderation and human review teams, but critics argue it still doesn’t do enough. Balancing freedom of speech with the need to protect users is one of Meta’s toughest challenges.

Concerns also extend to mental health, particularly among teenagers. Studies suggest that heavy use of Instagram and Facebook can contribute to anxiety, depression, and body image issues. Meta has responded by introducing new parental controls, time management features, and tools to promote positive experiences. However, many remain skeptical about whether these measures are sufficient.

On top of these challenges, Meta faces regulatory battles worldwide. The European Union has implemented stricter data protection laws, and U.S. lawmakers continue to explore antitrust action against large tech companies. These regulations could significantly impact how Meta operates, especially in advertising.

Despite the controversies, Meta continues to adapt and evolve. The company is aware that its reputation is at stake and that addressing these issues is critical to its long-term success. While criticism is likely to remain, Meta’s ability to innovate while navigating these challenges will determine its place in the future internet.

Meta’s Role in Global Communication

Beyond social networking, Meta plays a crucial role in global communication. In many parts of the world, apps like WhatsApp and Facebook aren’t just popular—they’re the primary way people connect to the internet. This makes Meta a cornerstone of digital life, particularly in regions where traditional infrastructure is limited. For individuals, Meta’s apps provide a way to stay in touch with friends and family across borders. Video calls on Messenger, voice notes on WhatsApp, and group chats on Facebook all make long-distance communication more accessible. For communities, Facebook Groups and Pages serve as gathering points for everything from hobbies to political movements. Businesses also rely heavily on Meta for communication. WhatsApp Business, for example, allows small and medium-sized companies to chat with customers, send updates, and even complete transactions. This has become especially important in countries like India and Brazil, where WhatsApp dominates daily life. For many entrepreneurs, WhatsApp is the only business tool they need. Meta also supports Facebook Marketplace, a platform for buying and selling locally. What began as a small feature has grown into a global marketplace rivaling Craigslist and even nibbling at eBay’s user base. Marketplace allows individuals and businesses to list items, reach nearby buyers, and handle transactions seamlessly. This central role in communication also carries responsibilities. Outages on WhatsApp or Facebook can disrupt millions of lives, highlighting how dependent people have become on these platforms. Meta’s infrastructure is not just a convenience—it is critical social infrastructure for much of the world.

Meta and E-Commerce

Another major area of focus for Meta is e-commerce. The company is working to merge social interaction with online shopping, turning its apps into digital marketplaces. By combining content, influencers, and shopping features, Meta aims to redefine how people discover and buy products online. On Instagram, the Shopping feature allows businesses to tag products directly in posts and stories. Users can click on items to see details and purchase them without ever leaving the app. This seamless experience has made Instagram a powerful tool for brands, particularly in fashion and lifestyle. Facebook Shops expands this further by letting businesses create full digital storefronts. Small businesses can sell directly on Facebook and Instagram, giving them an easy entry point into e-commerce. For Meta, this means more user engagement and new revenue streams beyond advertising. In-app payments are also being tested on WhatsApp and Messenger. In certain markets, users can send money to friends or pay businesses directly within the app. This could make Meta a major player in digital payments, competing with companies like PayPal and Stripe. By integrating shopping into its social platforms, Meta hopes to create a “social commerce” ecosystem. Instead of searching for products on Amazon, users could discover them through influencers, ads, or friends’ recommendations on Instagram and Facebook. This blending of social interaction and commerce could significantly change consumer habits.

Meta’s Investment in Connectivity

Meta has a vested interest in getting more people online. After all, the more people who use the internet, the more potential users and advertisers Meta can attract. That’s why the company has launched several initiatives aimed at expanding global internet access, especially in developing countries. These projects include undersea cables, satellites, and community Wi-Fi programs designed to bring connectivity to underserved regions. While ambitious, these efforts also highlight how deeply Meta wants to embed itself in the infrastructure of the internet itself.

One of the most well-known projects was Internet.org, later branded as Free Basics. This initiative aimed to provide free access to a limited set of online services, including Facebook, to people in regions with poor connectivity. Although it helped millions of people get online, it also sparked criticism for creating a “walled garden” version of the internet that favored Meta’s platforms. Still, it underscored the company’s focus on being the first gateway for new internet users worldwide.

Meta has also invested in submarine cable systems, partnering with telecom companies to build faster and more resilient internet backbones. These undersea cables improve connectivity between continents, particularly in Africa and Asia, where internet access has historically been limited. By funding such infrastructure, Meta not only improves access but also ensures its platforms run smoothly in high-growth regions.

In addition, the company has experimented with high-altitude drones and balloons to provide internet access to rural communities. While some of these projects have been discontinued, they demonstrate Meta’s willingness to explore unconventional solutions to connectivity challenges. Even if not all ideas succeed, each experiment pushes the company closer to its goal of universal internet access.

Critics argue that Meta’s connectivity projects are as much about corporate expansion as they are about altruism. By providing the infrastructure, Meta gains a direct pipeline to billions of potential new users. Still, whether driven by business interests or not, these projects have played a role in closing the global digital divide.

Workplace and Productivity Tools

Meta is also reimagining how people work, particularly in the age of remote and hybrid teams. The company sees immersive technology not just as entertainment but as a way to transform productivity. Its platform Meta Horizon Workrooms is one of the clearest examples of this vision in action. Horizon Workrooms allows users wearing VR headsets to enter virtual offices and meeting rooms. Inside these environments, people can collaborate using digital whiteboards, share documents, and interact as avatars. The experience aims to replicate the feeling of being in a physical office while offering the flexibility of remote work. By enabling eye contact, gestures, and spatial audio, Workrooms provides a more natural interaction than standard video calls.

In addition to Workrooms, Meta continues to integrate productivity features into its messaging apps. Businesses use Messenger and WhatsApp to coordinate with teams, manage customer support, and even close deals. For small companies, these apps are often a free or low-cost alternative to enterprise productivity suites. Meta’s tools are especially appealing in regions where WhatsApp already dominates communication. Meta has also been developing AI-powered assistants to make workplace collaboration easier. These tools can schedule meetings, summarize conversations, and even translate in real time. By embedding AI into both social and professional environments, Meta is positioning itself as a bridge between personal and work life.

The challenge for Meta is competing with giants like Microsoft Teams, Google Workspace, and Slack. While Meta has the hardware advantage with VR, mainstream adoption of virtual offices remains slow. Still, the company sees workplace tools as a long-term investment that could pay off as immersive technologies become more common.

Financial Performance and Market Influence

Meta is not just a cultural powerhouse—it’s also a financial giant. The company consistently ranks among the world’s most valuable corporations, with a market capitalization often exceeding hundreds of billions of dollars. Its financial strength comes almost entirely from its advertising business, which funds its ambitious investments in AI, hardware, and the metaverse. In recent years, Meta has generated over $130 billion annually in revenue, with profits regularly exceeding tens of billions. This financial performance places it alongside companies like Apple, Microsoft, Amazon, and Google in the upper tier of global tech leaders. Its size and profitability give it the resources to pursue long-term projects, even if they don’t pay off immediately.

A significant share of its expenses goes toward Reality Labs, the division focused on VR, AR, and metaverse development. In 2022 alone, Meta reported losses of over $13 billion in Reality Labs. While these numbers raised concerns on Wall Street, Zuckerberg has repeatedly emphasized that the metaverse is a decades-long investment. The company is willing to sacrifice short-term profits for the chance to dominate the next computing platform.

Meta’s financial influence extends far beyond its own balance sheet. The success of its ad platform directly impacts millions of businesses worldwide. Small businesses often rely on Facebook and Instagram ads as their primary source of customer acquisition. When Meta changes its algorithms or ad pricing, entire industries feel the effects.

Wall Street analysts watch Meta closely because its performance often signals broader trends in digital advertising and consumer technology. A strong earnings report from Meta can boost confidence in the tech sector, while a weak one can trigger declines across the market. This level of influence shows just how central Meta has become in both business and finance.

The Future of Meta

Looking ahead, Meta’s future depends on several key factors. The most obvious is its metaverse bet. Zuckerberg envisions a world where VR and AR are as common as smartphones today. The question is whether consumers and businesses will embrace immersive experiences or whether the metaverse will remain a niche product. Meta’s ability to create compelling, affordable hardware will be critical to this outcome.

Another key driver is artificial intelligence. Meta is embedding AI into every part of its business, from content recommendations to generative AI chatbots. As the competition heats up with companies like OpenAI, Google, and Anthropic, Meta will need to ensure it stays relevant in the AI arms race. Success here could keep its platforms engaging and open new revenue streams beyond advertising.

Regulation is another uncertainty. Governments around the world are scrutinizing Meta for its size, influence, and handling of user data. Antitrust actions, privacy regulations, or restrictions on ad targeting could significantly alter the company’s business model. How Meta navigates these challenges will shape its long-term growth.

Meta also has ambitions in e-commerce, where it competes with Amazon, TikTok, and Shopify. If its integration of shopping features across Instagram, Facebook, and WhatsApp succeeds, Meta could position itself as a key player in social commerce. This could diversify its revenue and reduce its reliance on ads.

Finally, the success of hardware adoption—including Quest headsets and AR glasses—will determine whether Meta can truly transform how people interact with technology. If these devices catch on, Meta could become the leader of a new digital era. If not, it may remain dependent on ads for the foreseeable future.

Meta’s Place in the Digital World

So, what does Meta do? The answer is far more complex than “it owns Facebook.” Meta is a social technology company that connects billions of people, powers global advertising, and invests heavily in the technologies of tomorrow. Its apps dominate communication, entertainment, and commerce, while its research in AI and VR pushes the boundaries of what’s possible. At the same time, Meta is a company under constant scrutiny. Its influence on privacy, mental health, and politics has made it one of the most controversial corporations of the digital age. Yet despite the criticism, it remains indispensable for billions of people and millions of businesses around the world. Meta’s vision of the metaverse may or may not succeed, but its willingness to bet big on the future sets it apart from many competitors. Whether through VR headsets, AR glasses, or AI-powered assistants, Meta is determined to define the next chapter of the internet. The company’s story is still being written, but its role in shaping the digital landscape is undeniable.

Ultimately, Meta isn’t just building apps—it’s building infrastructure for the digital age. From advertising to AI, from messaging apps to immersive virtual worlds, Meta is weaving itself into nearly every part of our online lives. Love it or hate it, Meta is one of the most important companies of our time, and its decisions will continue to shape how the world connects for decades to come.