Meta / Facebook

What is Meta?

Meta (Meta Platforms, Inc.) is a major IT company that operates the social media platform “Facebook” as its core business, along with multiple services including Instagram and WhatsApp. In 2021, founder Mark Zuckerberg changed the company name from “Facebook” to “Meta,” signaling a strategic shift to concentrate management resources on developing the metaverse as the next-generation internet platform.

In a nutshell: Meta owns the world’s largest social media platform and now seeks to lead the next era through virtual reality (metaverse) and related technologies.

Key points:

• What it does: Operate social media platforms, deliver advertising, develop metaverse
• Why it matters: A platform with over 2 billion users worldwide and the leading digital advertising company
• Who uses it: General consumers, advertising companies, creators, developers

Company Profile

Why it matters

Meta’s importance lies in its overwhelming network effects. Because Facebook is a platform where friends connect, its value increases as user numbers grow. Through this mechanism, despite facing competitive pressures in early stages, Meta rapidly established market dominance after crossing the tipping point.

Currently, Meta has over 3 billion monthly users and controls approximately 20% of the digital advertising market. This competitive advantage is so strong that rivals like Amazon, Google, and Microsoft cannot catch up. Additionally, Meta’s metaverse investment could influence the direction of the technology industry over the next decade.

Key Products and Services

Facebook The world’s largest social network. Encompasses SNS functions including personal profile creation, friend connections, news feed, and group communities. It’s also a leading advertising delivery platform.

Instagram A social media network specialized in image and video sharing. Popular among younger generations, especially strong in visual content, influencer marketing, and e-commerce integration. Reels, its short-form video feature, competes with TikTok.

WhatsApp An encrypted messaging app widely used globally, functioning as an SMS (short message service) alternative. Still establishing its business model despite Meta ownership.

Meta Quest (formerly Oculus) Virtual reality headset providing immersive metaverse experiences. Applications are expanding across gaming, education, and corporate training.

Competitors and Alternatives

Meta’s main competitors vary by industry segment. In social media, TikTok, Twitter/X, and Snapchat compete. In messaging, Telegram and Signal. In metaverse, Microsoft (Hologens), Apple, and NVIDIA. Particularly, TikTok’s rapid growth intensifies competition for younger users’ time.

In digital advertising, Google is the strongest competitor. Meta and Google together control approximately 60% of the US digital advertising market, creating an oligopoly, and regulators have raised antitrust concerns.

Strategic Shift to Metaverse

Meta’s 2021 name change reflects management’s view that the smartphone era is ending. The mobile SNS market has matured with slowing user growth rates and intensifying competition on ad prices. Zuckerberg judged that “the next computing platform is the metaverse and we should secure dominance there,” investing billions annually in R&D.

However, this strategic shift faces internal and external criticism. Uncertainty about metaverse market growth timing and massive investments pressuring short-term profits are reasons cited.

Related terms

• Platform Economy — The economic significance of the social media platform Meta controls
• Network Effects — The most critical mechanism supporting Facebook’s growth
• Ecosystem — The ecosystem where advertisers, creators, and developers interact on Meta platforms
• Digital Advertising — Meta’s primary revenue source
• Metaverse — The technology area Meta positions as the center of next-generation business

Frequently asked questions

Q: Why is Meta shifting from social media to “metaverse”? A: The smartphone social media market has matured with limited future growth. Meta views metaverse (VR/AR space) as the next platform and is rushing to build its position. However, whether the metaverse truly becomes mainstream remains uncertain.

Q: Why does Meta acquire so many subsidiaries and services? A: Network effects make Meta very competitive once it establishes superiority. However, in new trends (Instagram, WhatsApp, Oculus), Meta arrives late, so acquisitions enable rapid market share gains. Notably, acquisitions have drawn antitrust concerns from regulators.

Q: Will Meta continue growing? A: Smartphone SNS market growth is expected to slow. Metaverse success could bring exponential growth, while failure could lead to decline. Medium-term strategy involves AI-enabled ad optimization and short-form video strengthening to extend existing business.