During the pandemic, Facebook’s gross ad revenue from the Indian market grew to Rs 9,326 crore, recording a year-on-year growth of 41%. The company ended up paying a Rs 518 crore equalisation levy to government on the gross ad revenue, according to the filings to the Registrar of Companies. Facebook works on a reseller model, wherein they buy inventory from a global subsidiary and sell it to clients in India.
For Facebook India, these revenues consist primarily of ad revenues generated by displaying impression-based ads on Facebook, Instagram, Messenger, and third-party affiliated websites or mobile applications. Facebook India follows the agency model and its revenue is the commission it makes on reselling ads bought from Facebook Ireland to Indian clients.
