How Does Facebook Make Money?

Advertising is the word that describes the Facebook financial platform. The social network earns a lot of money from ads. There’s also another topic regarding it: commercial makes Facebook free for billions of people around the world. They say that by using ads everyone stands to gain.Facebook does not sell personal information, such as names and contact details, to make money. But some names and profile pictures may appear alonside certain types of ad advertising and sponsored stories.

Facebook ads are paid messages coming from businesses and they can include social context about friends. People who like a Page spend an average of 2 times more as customers than people who aren’t connected to o company on Facebook. How Facebook ads work? The application can identify and show ads only to people who are truly interested in a specific product. Users can be target by location, age, gender, interests, connections, relationship status, education and languages. Clients using Facebook ads have control over the budget, paying only when people reach their page.

In Sponsored Stories, someone who has opened a business pays Facebook to describe existing posts and activity that relates to that business. They do not include additional messages from the sponsor. This type of advertising is displayed on the right side of the page or news feed and is of several types: Page Like Story, Page Post Story, Page Post Like Story, App used and Game Played Story, App Share Story, Check-in Story, Domain Story. The first three types of ads can be used to promote a Facebook page, the next two (App Used and Game Played Story and App Share Story) to promote an application, Check-in Story on and a Facebook profile, while Domain Story is for websites.

Recently, Facebook has found a new way to make money. The social network offers users “relevant ads, to protec their privacy”. The company can now sign a contract with another site, for cash, to exchange information and to persuade users to buy certain products. In U.S., Facebook has a partnership with a company called Datalogix, which provides tools to measure the impact they have ads on Facebook in sales. This means that Facebook may require more money if they have papers showing that their work is effective.

Published on 14th Jan 2013 @ 10:37 PM