I am using social media like Facebook, Instagram and Whatsapp. Today when i scrolling Facebook, a question is came in my mind and the question is how does free app make money, are they really free or not. Why they give there free services, why they never request any fees for there services. How does Facebook make money, How does whatsapp make money, Why Facebook buy whatsapp in 19B. I am hare for tell you about that concept, read full article for know more.
How Does Social Media Earn Money
I tell you the truth behind the earning of that social media company's. There main income income is through advertisement. Just think if i place a car advertisement banner behind a shop, there is so many peoples who cross that way and many of them read that advertisement. Many of them from those people are not financial able to buy that car, many of them are not are eligible for buying that car and many other kind of people cross that way, they all watch that advertisement. There are almost 1,00,000 people see that ad but only 1000 people can think about buying that car. If i talk about social media advertisement, then they totally change that concept. In today's life social media use micro advertisement. Micro Advertisement is like showing that ad only that person who are really interested in that product.
In today's life may be social media know about you more than your self. They can follow you every time, where you go, what are you searching, for what you talking about, what you like, what you dislike, on which post you comment, you are student or not, you are working or not, what is you future goals, where you live, what your friend interest and many more. They collect all that information from you and know in which thing you are interested. They can maintain you all data in there records no matter how old it is. If you came on any type of social media then forgot about your privacy, they know each and every thing about you.
After knowing your interest they can show you specified ads on your mobile screen. They charge some money from advertisers and they show there ads to only that users who really interested in that advertiser products. That's how company's like Facebook can earn. Other method is selling there users data to other company, many times in history Facebook can face a problem by sharing there users data. In today's world, Facebook have a largest amount of users data. No other company's have that much amount of users data. That's why the revenue of Facebook is increasing day by day.
If i tell you about, why Facebook buy whatsapp in 19B $. The reason behind this is whatsapp is very popular in India and all over the world. As you know India is the second largest populated country, just think how much users data is present in the records of whatsapp. Whatsapp have large amount of contacts and there messages details. Thats why Facebook buy whatsapp in very big amount.
Instagram, Facebook and whatsapp they all doing same. They all collecting our data and use of there own profits. These social media give us so many facility, some time they give us that type of facility which no one can give me. So, the question is why we leave using these social medias. Its good but its bad too because some time you privacy is also hampers to. I tell you a real life based example, one day i go in some specified cloth shop, i will be there for almost 20 minutes and i came back. Next day in the timeline of Instagram is see an ad of that brand in which i gone yesterday.
For some users who are really cares about our privacy is not good but for normal users its beneficial some time. Because they show only that kind of ads in which you are interest in, for example if we want too buy a computer and they some me ads of pen, then it feels bad some time.
Conclusion
Basically Facebook, Whatsapp and Instagram notice us every time. Just think, i search some product on amazon and after 1h i seen an ad of that same product. So, basically if you using internet then you are not safe at all. If i tell you on average Facebook can earn 10$ from one user in one year and there is many of Facebook users is present on glob, if they earn 10$ dolly in one year from one user then calculate how much they can earn in an year from all Facebook users.
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