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How does Facebook make money?


RoboPimp

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1) Phone manufacturers pay to use their service

2) Advertising

 

The games, etc... is actually separate companies that develop for the facebook platform. I don't think they make a lot of money yet, kinda like youtube and/or a lot of search engines initially.

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Ads... their system lets marketers target their audiences pretty damn well. It's pretty freaking crazy. When you set up the ad, it'll actually tell you the number of potential users that match the qualifiers you put in. Much easier to target than with Google Adwords. From what I've heard at a conference back in spring, the marketers mentioned they were getting better rates than they were with Adwords.

 

They don't have to sell your information. They just have to provide a method to let others make use of it within the confines of their application. Pretty smart actually.

 

Think about all that crap that you "like" or have as interests in your profile... that's the stuff that they are using to drive the tool I mentioned above.

 

Where they're gonna run into issues is if they start taking stuff from your status updates and wall posts to others and try to use that as trending information. Just because I might post something on someone's wall making fun of them by saying they must love Bieber... doesn't mean I have any interest in Bieber and would be a good audience for an ad. There's implications for the accuracy of their tool and privacy ones as well. Not sure how much of that has already made it to reality or not.

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As far as the games go, they get a % of every dollar spent. It varies probably depending on popularity, who makes it, etc, but seeing as how they get money just for hosting the content (oooh wow!) and advertising, and selling your info, and on and on and on.

 

They make money off of your life that you willingly give to them. :thu:

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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.

 

 

Hmmm, why do I suddenly have a craving for taco bell?

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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.

 

 

pure wisdom

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I think FB also owns the rights to all the images that are posted, so they can potentially setup up a stock photography biz and licence the images for 3rd party use..

 

 

If this is true, this sucks big time for "photographers" using Facebook.

 

What about music rights?

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don't forget about all the other sites that use FB. for example, cnn.com lets you 'like' a story on their site, which shows up on your profile, advertising the cnn.com story. cnn's gotta pay for that, right? multiply that by like 1000 other sites, and now you're talking some cash

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I just found out about the ads about a month ago and put one up. They charge me about $20 a week but so far I have only seen one sale out of 56 clicks. So it's about paying for itself, maybe worth it for new exposure.

 

Has anyone seen our ad? Does it annoy you, or maybe it doesn't matter as you will see some other ad if not ours...

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