Ever wonder how a so-called “social network” website is making so much money?
I mean think about it… There’s no charge to join, no subscription fee, no new hardware or software to buy… How on earth are they pulling in millions and millions of dollars??
It’s simple really. ADVERTISING.
Facebook charges companies to place ads on the site. Ya know, those annoying things that are the side panel of every page, yeah those. Facebook has created a quick and easy way for companies to target their ads. By collecting all kinds of data about its users (through profile information, places they visit, likes, etc.) Facebook can place ads in just the right place at just the right time. Because of this pinpoint accuracy, advertisers flock to them for ad space!
That’s how they make money. They charge for ad space, and thousands of companies are willing to pay large sums for it.
So don’t overlook the potential of selling ads on your site!
One Response to “How Does Facebook Make So Much Money?”
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I am interested to see how they are going to do with advertisements once the company goes public with their IPO coming up in May. It seems that most of the international uses for Facebook are being done on Mobile devices which makes it harder for advertising. From what I have read it seems like facebook maybe taking a more YouTubeish approach at advertising for mobile devices. Like when you open a page or look at peoples pictures it may begin with an embedded commercial which lasts about 30 seconds, but this remains to be seen.