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How Facebook Earns Money

How Facebook Earns Money :

Well my favorite time pass is scrolling down the Facebook undoubtedly and I'm very much sure that many of us love using facebook or at least feel loved.We have the application in our phone right so better.
  
How Facebook Earns Money

We anytime thought that what is the source of their income or how do they earn money how Facebook earns money.

So today my entire article is about how Facebook earns money and you won't believe the fact that as per 2017 report Facebook has claimed that they have earned 40 billion dollars. Yes absolutely you read right 40 billion dollars in the year of 2017 and 89 percent of the revenue came from the digital advertisement.

Facebooks Earning Platforms :

So we will discuss about the main two platforms through which the Facebook earns money :

•first is through the advertisement & the
•second is through the video platforms.

Before that what is important to know that, do you guys have ever wondered that how come you get so many advertisements. Then you have not liked the related topics or related videos yes that reason behind this is Facebook has allowed or you can say in other words Facebook has sold its database to many companies like Netflix, Amazon,Spotify.

Such big companies have the data of Facebook users. Yes you read that exactly right they have sold the privacy so there have been many cases or there have been many you know the investigations going under this. And Facebook is undoubtedly modifying its privacy structure also you can say so.

Facebook said it stopped selling access to user data years ago. But some of it was still shared last summer the company later said sharing that user data helped its users see recommendations from their Facebook friends on other websites.

Facebook has announced a new tool for data privacy recently For better protection of users data you've probably read that before also.

But how much does it really change here's the thing Facebook is a business and it's entire business model conflicts with the very idea of safeguarding user data.
We're going to break down how
Facebook makes money off :

                   How Facebook Earns Money

Even if you've set your profile and posts to private.Facebook still has access and more importantly authority to trade your personal data. That's something you consent to maybe unintentionally when you click,

"I agree to its Terms of Service." Basically in the site contact information all the data you put including your list of friends on Facebook and even private messages is available to advertisers who use it to create data banks.

Facebook says it makes that, data anonymous so advertisers buy sets of data based on demographics. They can narrow that data down into subcategories based on their branding goals. And they can even use it to make custom ads and pay Facebook to show those to the users.

Facebook Advertisements Earning:

Let us just understand how does Facebook earn money through advertisement.
California reveals newspaper has commented on this fact that Facebook generally sells the data to the advertisers and they sell it in the form of custom demographic bucket.
What is custom demographic bucket ? now it is basically categorization of the data on the basis of caste and religion. Then you can say on the basis of the sexual orientation etc.
So what happens at take the data what they want as per their branding goal.

Right so all these thing. This is the way exactly how Facebook owns more money through the advertisement platform.

Facebook Videos Earning :

Now let's talk about the video platform. So what happens is we have seen in past few years that Facebook has introduced features of Facebook video. Now in past few years what happened is the watch time of Facebook videos has increased tremendously yes yes you read that right again it increased tremendously.
So what happens is they are first of all earning money because of this thing.

The second thing they have introduced a feature in the Facebook messenger. Stating that for example, while you type some message you will be getting a chat box or you will be getting any advertisement so you have a option to chat in that advertisement. For example you are using messenger and you are getting an advertisement of some particular brand particular you can say a fashion brand or some other brand you are getting advertisement and if you want if you're liking the gift and if you want to buy it you can directly through messenger chat to the seller of that particular product. Yes you read it right this is one of the features which many of us are not aware of and this is there.

Final words :

So they mainly earn through mainly two things,
☆first thing is through the advertisements,
☆second thing is through the videos.

In videos there are two categorizations again :

•first is the watch time which has gradually increased over here and the 

•second part is through the messenger 
advertisement.

To be fair Facebook has a business model that has worked for the company. Thus for that business model is just based on gathering and sharing users personal data and given the company's massive revenue; unless it makes a radical decision to change the model your private data may not be so private and if you're a Facebook user it's up to you whether or not you're ok with that.

so here we have shared the main two streams which Facebook's generally used to generate money.

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