How Facebook Generates Income

Social media platforms have globalized the world to a small village. These platforms have made interaction easy, and have their own way of making money while still protecting the privacy of the users. Facebook is a social interactive site that lets users generate their own profiles, upload videos, and photos, and send messages. Facebook, being the most popular social networking site have been changing tactics to cope with ever-changing technologies while still maintaining ambitions to increase its revenue. 

Facebook generates revenue through digital advertisements, which involves using the internet to convey persuasive advertisements to users. Over the past few years, Facebook has generated over half a billion dollars each year in revenue, making Facebook remain advert supported. The hugest portion of advertisements is self-serve advertisements podiums which are shown on the sidebars of the pages. The pages may include user profiles, groups, and third-party applications. In addition, Facebook earns more revenue from engagement advertisements, which involves large brands. As the users log in, they mingle with the advert which is placed on the right side of the homepage. Facebook is working on a project named brand lift that will help increase engagement adverts. Also, Facebook has credit programs that generate revenue. Originally credit programs were meant to pay for gifts but Facebook allowed access to third-party designers. The reason was to allow developer designers of applications to assimilate credit programs to their application.

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Privacy on Facebook is paramount due to its huge number of users. Leakage of information may result in damaging an individual’s or an organization’s reputation. Facebook privacy control settings change frequently, one can easily control who can view information about your posts, pages and people you follow. Privacy settings are able to deny information to third party applications like video games applications. Also, the settings allow one to select those to view a video that you are streaming live. In addition, one can control who shares a video you uploaded. Accordingly, it enables the user to lock out everyone that threatens or uses inappropriate language. Finally, through restrictions on who can view your posts an individual may decide to lock out people held with dignity in the society. They include parents, relatives or bosses at work.    

Changing privacy settings to public may leave the account vulnerable, but will lead to an increase in revenue to Facebook. Allowing the public access to your account means that, you have access to information. The user may be tagged in groups with an array of information and advertisement which in turn leads to an increase in Facebook’s revenue through engagement advertisements. Also, the user may be tagged by professionals in fields like law or medicine leading to an increase of income to both the professionals and Facebook through self-serve advertisement. The revenue accrued from Facebook is affected by privacy changes. It happens for a different reason including an increase of traffic on the Facebook site and exposure of the individuals to advertisements. Facebook should allow the user to prioritize from what group or geographical location to get advertisements from. It is beneficial for it helps save time searching for relevant adverts. Also, it increases revenue as the users easily navigate through the platform with a satisfactory outcome  

In conclusion, though Facebook has had privacy concerns it has made the procedure of handling privacy easy. It has created revenue in several ways including advertisements. Facebook has experienced persistent progress, and with a few adjustments, it will be more successful. It is evident that most of Facebook’s revenue comes from advertisement.

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