Internal docs suggest $16B in 2024 ad revenue tied to fraud
Meta reportedly generated approximately 10% of its 2024 revenue—around $16 billion—from ads promoting scams and prohibited products, according to internal documents reviewed by Reuters. These ads included fraudulent e-commerce schemes, illegal gambling platforms, banned pharmaceuticals, and deceptive investment offers, largely displayed across Meta’s platforms like Facebook and Instagram.
The report indicates that Meta served users an estimated 15 billion “high-risk” scam ads daily. These ads are defined as overtly deceptive and are part of a broader internal classification system to assess fraudulent activity. While Meta’s total sales for 2024 reached over $164.5 billion, these risky ads represent a significant slice of the company’s advertising business.
Revenue growth despite rising scrutiny
Despite concerns over ad quality, Meta continues to see robust financial performance. The company recently reported a 26% year-over-year increase in third-quarter revenue, reaching $51.24 billion. It also raised the lower end of its annual expense forecast by $2 billion to accelerate its investments in artificial intelligence.
A December 2024 document reviewed by Reuters revealed that Meta earns about $7 billion annually from the most deceptive category of ads. While some internal files suggested efforts to reduce fraudulent ad content, others pointed to hesitation about removing such promotions too abruptly, fearing a potential revenue impact.
Meta defends its anti-fraud efforts
In response to the report, a Meta spokesperson emphasized that the company actively combats scams across its platforms. The 10% revenue estimate from fraudulent ads was described as “rough and overly-inclusive,” with further analysis indicating that many of the flagged ads did not actually violate company policies.
“The leaked documents present a selective view that distorts Meta’s approach to fraud and scams,” the spokesperson stated, noting that the company remains focused on assessing the scale of the issue and implementing corrective actions. However, the report raises broader concerns about the reliance of digital platforms on high-risk advertising for revenue.
