How Facebook Is Making Money From Everything You Do


Ever since Facebook launched in 2004, it's been very hard to exaggerate the influence it has built so far but nonetheless, Facebook's influence plays a huge roll in our lives, whether it's to stir up envy among friends or start up a political showdown, It has made its mark in the sands of time.

It doesn't take a Geek to know that Facebook is making billions of dollars from almost everything we did on our news feed. An average Facebook user spends at least 35 minutes a day on Facebook which is equivalent to almost 5 years of your life, that's more time than you'll ever spend hanging out with friends.

Facebook is expected to reach 2 billion users this year, 2017 and coupled with that milestone, Facebook made quite a lot of money in the last 4 months of 2016 - $8.81 billion making a profit of $3.56 billion. Facebook generates an average of $1.57 per user monthly which is not bad for a user base that increases in millions every month.

The question is - Where does all the money comes from?


Facebook already knows your interests and topics you may like to click so they provide extensive options to advertisers. Advertisers can target people from a specific age range, region, sex and other demographics as well.
95% of the ads you see while scrolling through your feed are from products you'll be interested in.

Facebook knows that you may occasionally click the ads so instead of increasing the cost of their ads and pushing out more news feed ads they've added it to their Facebook Audience Network. While reading instant articles on Facebook, you get to see the ads while scrolling through the post.

Another of Facebook’s revenue streams is Facebook Payments. This is where Facebook takes a cut of purchases made within games that you play on Facebook.

Facebook also has a couple of more income streams, Instagram Ads, Sales Of Oculus Rift headsets, etc.

There are still more options to expand to. Whatsapp is still available but I'm really hoping they don't ruin our Whatsapp experience with ads. 🙀

By the looks of things, this is just the beginning and Mark Zuckerberg seems to be driving his company in a direction that guarantees maximum profit.

Ads are the major source of revenue for Google and Facebook but with the increased use of ad-blockers, revenue from ads may soon take a hit and Publishers are fighting it with everything they've got.

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I'm a Computer Science Student of The University of Port Harcourt and a Chelsea Fan. I love RnB and A little Trap Music. Tech flows in my veins. I love to have fun with friends and I read a lot. 

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