Mark Zuckerberg, CEO of Facebook is the fifth richest person in the world SATs the Forbes.
Have you ever thought how Facebook earns so much money?
● As stated in the previous article, it has said that young adults consume at least 60% of
phone usage is only on social media (refer the previous article). There are millions of user
in social media like Facebook, Twitter, LinkedIn and many more.
● Even though there are millions of user for those social networks, the user doesn’t pay any
money for the usage.Most of the users just use the networking sites to share information,
photos, and videos. Then how they earn so much money with that? Still a nightmare for
many people. This article will be clarifying all those doubts.
● It’s been said that FB will charge one day to the user which will never happen and it is
completely a rumor. Facebook was started in 2004, then there were many updates and an
app was developed after the technology emerged with Android. Then messenger,
Instagram, and WhatsApp Messenger were added to his deck.
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1.) Income for Facebook
● The ultimate source of FB earning is marketing. You would have seen many sponsored
pages, events, and posts. You can view the page of your tastes and likes. It will be
promoted till it attains the particular likes or duration as the user paid. There are many
subscriptions for the user to promote their page.
● But this would not earn a money to be a billionaire. The maximum of income will be in
marketing the e-commerce. The most of the Income is from FB Ad API and games.
● Zynga, the famous developer of games on Facebook is also the main source of income for
Facebook. Some of the games are Farm Ville, Cafe World and many more. There was a
span of time on Facebook where the user will always get a notification from his/her friends
for playing a game.
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1.) Facebook Exchange
● Have you ever wondered what the product you have searched on e-commerce websites or
in a search engine to know about the product will appear on your newsfeed?. You can
purchase the products from various e-commerce website ads.
● If you think it’s a coincidence, definitely it is not. It is Remarketing or Retargeting. This is
possible on Facebook due to the service called Facebook Exchange (FBX) started in 2012.
These exchange platforms allow the advertisers to target the users with highly relevant
product Ads in their newsfeed depending on browsing habits.
● FBX is a real-time bidding ad exchange in which advertisers drop tracking cookies on users
browsers as they surf the web – shopping, for instance, and retarget the users with the ad
once they open the Facebook, perhaps to remind them to come back to the sites they were
shopping, says the Business Insider in an article.
● For instance, let’s put a situation. If the user is searching for a television in Sony website
and analyzing the catalog. Soon the website will create cookies on your device. Then
advertisers will be notified about the search of the product and thus it will post an ad on
your Facebook newsfeed.
● Ads will reach the user depending upon the Advertiser bidding. They will post the ads of
high Bidder. That’s how the FB earns in billions through remarketing or retargeting.
● Most of the revenues are from the business like Doctors, lawyers, restaurants, boutiques
and much more. With this article, it would be clear that Facebook generates revenue by
marketing and not by the time spend on social media or by a number of users. And to be
sure Facebook will definitely never charge you for its use.