How Does Facebook Earn with Free Services

Most of the people now using social sites, mostly Facebook and Whatsapp. But, have you ever wonder how does Facebook earn without applying any charges. Still, Facebook's year turnover is in billions. Let's see how does Facebook earn this huge amount with free services. Believe me, you may have to concern about your privacy.

Advertising

If there is no product to sell then think once again you will find someone, it means you will be their product. These social sites are nothing but a huge advertising platform where we are the products. 

Let's only talk about Facebook, it has 2 billion users that it has archived recently. And 1.6 billion users visit this site every month. More visitors means more advertisers and which means more ads on your screen. But I've never seen anything irrelevant on Facebook, why is it so? Like, open a website which contained Google ads and on the other hand ads by Facebook on the Facebook page. You will find some difference, it is targeting. Facebook use targeting feature more than any other advertising agency.

  What is Targeting?

Targeting is the feature that is used by almost every advertising agency. This feature let them decide which ads would be better for their user. That's why if you are looking for a laptop or smartphone on google then next time you will find ads related to those things. For this, these agencies use your data and build them that you provide them as their user.

If speaking about targeting then Facebook is superior in this. It collects your every single detail. Even Facebook knows more than you do about you. You may forget some of your incents but Facebook never. 

Facebook has your details like your phone number, email ID, address, your IP details, what you browse next to Facebook tab in your browser, what you have inside your mobile phones, what you post, where you post and lot more. Interesting thing is, we provide most of the details. 

Why did Facebook buy Whatsapp for $19 Billion US?

Next question arises, why did Facebook buy Whatsapp for such a huge price, still, it is totally free. The only answer is to build the data with more precision. Whatsapp is used to collect users information like their contact information, status report etc. There are almost 1.3 billion monthly users of Whatsapp and almost one billion daily users. Almost 50 billion messages have sent on it and almost 1 billion videos are shared on Whatsapp. This is more than a lot to get to know you completely.

All this data that Facebook collects through Whatsapp and also by Instagram is being used to make your target of your favorite ads. Facebook doing this for many years and it never loses a single file about you. All this seems so complex but this is not. It's just use of cookies that most of the site uses.

Closing Words

Facebook seems to be a big advertising platform but still, it is worth even withs its targeting ads. Think if you want to buy a bag and instead of watching ads of bag Facebook is showing you something else like a laptop or a smartphone. That's why is worthy of use.