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How does Facebook make money?


RoboPimp

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Ads, facebook is one stop access to 500 million people who in their profiles basically tell you which products they'd be likely to buy. They also provide a platform for games (farmville etc)

 

winner winner chicken dinner

 

even at a 0.1 cent per view, think of all the page refreshes that go on for 500 million people surfing the exact same site....bingo :thu:

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Ads, facebook is one stop access to 500 million people who in their profiles basically tell you which products they'd be likely to buy. They also provide a platform for games (farmville etc)

 

 

exactly

 

think about it, how much would a giant billboard cost in time square? Now think of a billboard with over 500 million viewers, that view this billboard several times a day.... now think if you knew pretty much everything about these viewers, they're interests, they're age etc.... all of a sudden you have a billboard/adspace (much like television) that not only allows you to perfectly segment your target market, but also provides links to additional information and allows potential customers to purchase or review a product from the comfort of their computer chair....

 

When you have an adspace that is this huge, specific and interactive, you have yourself a goldmine....

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if you fill it out, they know

 

your age

your location

your hobbies

your sexual preference/religion/political leanings

what bands you like

what shows you watch

what movies you watch

what books you read

same info for your friends

 

even without giving your name & specific details or even showing you ads, they can cross reference all that data, take it to an ad agency and say "hey, there's now a trend with gay White christian republican males aged 18-27 to listen to Ben harper, snowboard and eat tacos, pay us", then suddenly taco bell has ads on tv with a chalupa snowboarding while Ground on Down plays in the background.

 

money is in the data, not anything you actually see on the site. games and little ads are just bonus money.

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