Reuters: Meta profits from fraudulent advertising

The news agency Reuters published an investigation based on internal Meta documents, according to which revenue from Chinese advertisers reached more than $18 billion in 2024, accounting for over 10% of the company’s global revenue.

Meta’s advertising revenue from China

According to the investigation, about 19% of that amount, or more than $3 billion, came from fraudulent ads, advertising by illegal gambling operators, and other banned content.

Internal Meta assessments indicate that China accounts for up to 25% of all fraudulent advertising displayed on the company’s platforms worldwide.

Internal assessments and the company’s response

Meta’s anti-fraud team

In 2024, Meta created a dedicated anti-fraud team to work with advertisers from China. As a result of its efforts, the share of violations fell from 19% to 9% of advertising revenue from that region.

According to Reuters, the team was later disbanded following personal involvement by CEO Mark Zuckerberg. Meta representatives stated that the group was always intended to be temporary and that its closure was not a direct order from the company’s chief executive.

Increase in violations in 2025

By mid-2025, the share of ads with violations from Chinese advertisers had risen again, reaching 16% of Meta’s revenue from China.

Reasons behind the spread of fraudulent advertising

The role of advertising agencies

Most advertising from China is placed through a network of large and small intermediary agencies. According to internal documents, this model makes oversight more difficult and contributes to the spread of scams, illegal betting, and other banned content.

Some Meta partners receive moderation leniency, allowing ads that violate the rules to remain active longer and generate more impressions.

Position of the Chinese authorities

According to the consulting firm Propellerfish, the Chinese government does not interfere with such advertising because it targets foreign audiences and does not affect users inside the country.

Meta’s financial priorities

Internal documents show that when making decisions, the company considered the potential impact of stricter measures on advertising revenue. In some cases, anti-fraud actions were delayed or softened due to the risk of lost income.

According to staff assessments, China remains the largest source of fraudulent advertising on Meta’s platforms, and the level of violations in this segment was considered acceptable from a business perspective.