How Does Facebook makes money?

However, Facebook is a great online community that requires a team of experts for maintenance. Facebook is said to keep costs more than a billion dollars a year. So the question is: if they are not charging users for the record, how do they make money?

This is the main source of income Faceboook. According to the financial statement for the previous year, Facebook earned 4,279 million dollars in advertising. Here’s how Facebook makes money from advertising:

Companies create ads and pay for these ads to be seen by the right people. Facebook ads appear in the news part, on the right side of Facebook and Registration page. Facebook does not sell information about its users, but makes use of information in order to target ads. For example, if you like tennis, you might see ads for tennis. In addition, you may see advertisements and your friends like. Similarly, if you like a page, your name and profile picture will be visible on the announcement of this page.

If you go to the Settings page privacy in the list on the left you will find the “Ads” option. After clicking on “Ads“, you find the “Ads and Friends” option.

If you click on “Edit” you’ll see a label “People who can see my social actions associated with ads” and here you can select “No” or “Only my friends”. Thus, your name will not be combined with any ads on Facebook.

You can not completely turn off Facebook ads, but can influence the type of ads you see in several ways: You can add more interest to your timeline or you can make ads that you like as favorites for Facebook show you the Similar ads in the future. If you do not like a particular ad, you can click on the X, advertising is hidden and no longer see ads like this.

Facebook ads are personalized and based on information provided by users. If you add your current city, your school, your interests, your hobbies, the actions you take on Facebook, the pages that you like, the groups that you have joined, the keywords you use in your status updates … All of them it is used to show ads that are believed to be important and relevant to the user. No information is shared with advertisers, since the choice of the recipients of the ads are done through an automated system.

Facebook Credits are used to purchase virtual and digital goods on Facebook. They can be used for any supported games or Facebook application. Facebook provides a secure connection every time credit card information or PayPal is added in order to maintain financial information securely.

Facebook advertising is the main source of income of this social network. The number of companies that advertise on Facebook is very large, and they are attracted by two things. First, the average number of daily active users is around 699 million according to data released in June 2013. So an ad on Facebook can reach a large number of people. Another reason for advertising on Facebook is the ability to reach our audience. With the data you share on Facebook, your interests, your tastes … Facebook is able to target their ads so that shows that are relevant to each user. Thus, ads on Facebook are more likely to reach relevant consumers and turn them into potential customers for companies that advertise their product or service.

Facebook as a platform is ideal for generating revenue through advertising. Your ads will not appear to break the user experience, as in the other platforms. They are less intrusive and in turn makes them prone to more clicks from users because usually coincide well with the interests of individuals them. These ads will not make the video you’re watching or you bring up a pop-up unexpectedly stops, but is located on a site that is both visible and easy to overlook by users. All this makes Facebook a very unique site as an advertising platform (which also increases the cost of advertising), but they compensate with good conversion rates, excellent focus, full statistics and monitoring tools.