Earnings of social websites

Facebook works on "Targeted Advertisement" concept. in this concept suppose i want to advertise a product then i will advertise this product concisely to those people who may be interested in buying that product.This type of advertisement is done by Facebook and the advertising company pay a good amount to facebook.

Facebook has a huge database.Toady in this world "Facebook know us more than we know ourself".May be we have forgetten something but Facebook remeber all the things in their record.May be you have seen that Facebook says "We care about your memory".you forgot about the picture,status,post that you have uploaded or written on facebook one year later but facebook remembers all these things.

We even can't imagine how much facebook know about us. it includes all information such as name,gender,email,address,current location, your status,what you are posting,what you are liking,where are you visiting,to whom you are chatting,your comments,your views towards a event etc.

Facebook also combine "WhatsApp" to gather more and more information about you.When you install WhatsApp in your mobile . It always ask for Agree and Continue.when you click this icon that means you are giving rights to WhatsApp to access your contact list . So it get all the contact numbers from your contact list . In contacts we save a lot of information about a number such as Name ,company,Title,email,Work,job profile etc so WhatsApp access all these information about the contact number.

So Facebook has all these information and with the help of these information.Facebook know what you actually what to purchase so Facebook brings only those advertisement to your timeline that is useful to you and you will possibly visit this advertisement site and place to buy product.

Currenlty this type of Targeted advertisment is only done by Facebook.The advertising Company pay a lot to Facebook that's why the revenue of Facebook is increasing day by day.

ene simple example one day i was just looking for a wrist watch at Amazon site.after around 30-35 minute. I see the advertisment of same wrist watch in my timeline of facebook.

So Facebook with help of WhatsApp has collected a lot of information about us that we himself don't know. They are justing using these information to do targeted advertisment and the advertising company pay a lot to Facebook .

On an Average Facebook earns around 8-10$(dollar) from a single user in a year.

There are also several means through which Facebook makes money such as Page Promotion,Virtual goods and Gift Shop ,games etc.