Facebook's revenue from advertising and share of the online ad market have grown significantly as shown in this bar-line chart. Its ad revenue grew from $1.9B in 2010 to $39.9B in 2017 and its share of the online advertising market grew from 2.9% to 19.7% over the same time period. Ad revenue grew at 55% per year over between 2010 and 2017.
Almost all of Facebook's revenue comes from online advertising. In 2017, online ads made up 98% of its revenue. Over each of the past 8 years, online ads made up at least 84% of Facebook's revenue.
Facebook's dependence on online advertising revenue makes it very vulnerable to its users perceptions of its offerings. If users reduce their time spent on Facebook or move off of it entirely, Facebook's revenue will take a big hit. Among the tech giants, both Facebook and Google are very dependent on the single revenue source of online advertising. Apple, Microsoft and Amazon have a much more diversified revenue base, as shown in this Chart of the Week post.
Bar-Line Chart with Data Row
How I Created the Bar-Line Chart
I wanted to show both the growth in Facebook's advertising revenue and its dependence on ads. The bar showing ad revenue growth and the line showing market share move up in parallel, reinforcing the growth message. The CAGR column reinforces the message by quantifying growth in a single number. I chose a data row for advertising as a percentage of total revenue to indicate how high the percentage was and how little the percentage has changed over the last 8 years. Although the percentage dipped in 2011 and 2012, it is now back at a level higher than 2010.
Here are the steps I took to create the chart:
- enter data for ad revenue, total revenue and market share into the Mekko Graphics Data Editor
- create formulas for advertising as a percentage of total revenue
- add a column for CAGR and insert the Mekko Graphics CAGR formula
- show market share as a line in the stacked bar chart and move it to a second y axis
- show advertising as a percentage of total revenue as a data row
- show CAGR in CAGR column
- adjust number formats, adding $ and B to bar totals
- do not show total revenue
- adjust the axis maximum so that the line appears above the bar in each year
- remove y axis lines
- recolor bar and line
- adjust margins
- add a legend and position it on top of the chart
Take This Chart and Make It Your Own
Download this chart and edit it using Mekko Graphics. See more bar-line chart examples in our Chart Gallery. Check out our videos to learn more how to make a bar chart and how to add data rows to your charts.
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