The Relationship Of Privacy To Facebook’s Business Model
- Topics: Facebook
- Words: 653
- |
- Page: 1
- This essay sample was donated by a student to help the academic community. Papers provided by EduBirdie writers usually outdo students' samples.
Download
Download
Facebook was founded by Mark Zuckerberg in 2004, since then Facebook hasn’t stopped growing. Facebooks model relies on user’s personal information; what pages users shares and likes. Facebook believes that everything you upload become their property, like images, videos, posts, music and so on. When you use the Facebook page, then you already have agreed on their terms that says every content you publish they can use it, without paying you. So, everything you share that is public its free, but if you share the content only with your friends is not free. Facebook have also a very strict policy about the content you share with other users, if it has an abusive or bullying message, nudity and other disturbing content, then Facebook will remove it (Laverty).
Facebook is a free social platform and do not have a premium membership option. Ads are everywhere on the Facebook page. Some of the apps are sponsored and some of them are based on users clicks and geographic data. For example, if you do a search on Google for products, travel etc. then you will probably see the adds for similar product or travels on your Facebook home page. This happens because the browser saves your searches and shares it with other apps and shows you similar adds. In 2018 Facebooks revenue was about 25million dollar, and that is four million dollar every month in 2018. In 2012 Facebook earned around 84% of their revenue from adverts and selling virtual games like FarmVille and Candy Crush. Facebooks highest earned was from the virtual game named Zynga, which was a poker game. They were also the maker of FarmVille. In 2017 the numbers dropped down, because they were mostly relied on advertisement to make money. Over 98% of Facebook revenue comes from advertising (Rose, 2018).
Facebooks business model’s strategy is based on generating data, which means more people shares and click on “Like” button, the more people socialize and connect. We share pages we like, where we are in the world and so on. All these shares we do, will companies pay a lot of money for these data. Facebook is the biggest and most dominant social platform, and they know every move we make on the page. For instance, like they know our likes, political views, which food & cinema we like and our location. All these details are helpful for companies, because they know who they should target with them adds. Since our data is very valuable to companies, this is the reason why Facebook adds cost more than TV and radio advertisement (Rose, 2018).
Facebook is known for killing their competitions, with their money power they have ability to acquire any platform. They tried to buy Snapchat, but they failed, then Facebook added Snapchats feature “Stories” to all their platforms. For example, they added “Stories” feature on Facebook and Instagram, so people don’t use another social media platform (Rose, 2018).
Facebook has $50 million annual revenue and it grows about 50% every year. Facebook’s motto is always been “build a community and bring the world closer together.” So how build a service that connects people without people paying? That’s why they use adds to support Facebooks business model. According to a survey done by record.net around 40% said that’s they will not pay more than five dollars, and that is way lower than YouTube and Netflix subscription fee. (Rose, 2018).
Facebook business model is about sharing user’s information. All data that we publish every day and shares on Facebook like political views, pictures etc. will be used as long Facebook can make money on the information you publish (Marketwatch, 2018).
Facebook is one of the leading social network platforms, founded in 2004 with a mission to “give people the power to build community and bring the world closer together” (Facebook, 2018). This suggests that Facebook is an important marketing tool to reach target audience. From...
Abstract Mark Zuckerberg was born on May 14, 1984 in Dobbs Ferry New York and is an entrepreneur and philanthropist. He is also the founder of the well-known social media website and app called Facebook. This well-known social media website started off as a site...
In their article, Seder and Oishi (2012) ask a novel question based on previous research conducted by Harker and Keltner (2001) which had demonstrated that there was a relationship, namely a positive correlation, between the smile intensities (as a measure of expressed positive emotionality) of...
EduBirdie considers academic integrity to be the essential part of the learning process and does not support any violation of the academic standards. Should you have any questions regarding our Fair Use Policy or become aware of any violations, please do not hesitate to contact us via support@edubirdie.com.