Facebook, the world’s largest social media website or if I may say, the world’s largest database with more than 1 billion monthly active users. A website that expands in an unprecedented scale.
They said “It’s Free and will always be“, then how is it worth billions of dollars? How do they store photos, videos, messages and posts of that many users? The technology to build a data center will cost them billions of dollars, so how do they do it?
How Does Facebook Make Money?
A website that was invented by Harvard students in 2004, now is the richest social media site of all times. Facebook makes money from Ad Revenues (Advertisements). They use our profile information and all the data associated with it to advertise for their clients. When you are creating an account with them you will be asked for personal info like your name, where you live, your birthday, your gender, interest etc. and when you actively start using the website, posting and liking things Facebook collects more data from you. Let’s say you post on your wall that you are going to a Spanish restaurant to grab a cup of cappuccino, now they know where you want to hang out and what type of drink or food you eat, just from a single post.
Facebook uses what is called “Target Advertising“, they target users based on the data collected from them, for example, location, demographics (contents users share), interests and behaviours. If you want to advertise for example an online jewelry eCommerce business, they could show this ad to specific audience of women ages 18-54. You will also sometimes realise that the ads you normally see on the right side bar usually relates to your life.
Could They Still Collect Data While You Are Not on The Site?
Even if you are not connected to the site they could still collect data from you. Lots of websites are using “Facebook Connect” and “Facebook Like Button” to allow users to login to other sites using their Facebook credentials or Like things off-site. So knowingly or unknowingly they get data back.
Some countries blocked Facebook for security reasons. But nonetheless, it’s a great website that we all use to socialise and connect with new and old friends, and do many other things. It’s just good to know how our information is being used, because most of us never bother to read Terms & Conditions and Data Privacy Policies.
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Ousman Faal [Digital Vigilante] is a Tech Entrepreneur & Digital Skills Trainer who teaches both in the classroom and online. He has experience in various technologies and likes sharing it with others. Ousman has published 144 articles on this blog. He is the CEO of Faalen Technologies and Skills.gm.