How facebook and Whatsapp make money ?

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Hello Folks ! Hope you are good and doing well.Many of you are still confused that how whatsapp and facebook many from it although they are free to use without taking any money ? How you are able to use their services in free ? From Where these companies earn ? To know the answer for these question keep reading this post.

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Lets skip facebook first and talk about  whatsapp only.You will see it is

  1. free to download
  2. free to use for everyone
  3. containing no advertisements till date
  4. so many features and best app for instant messaging

But still what is the benefit to Whatsapp Inc. ?  and why facebook bought whatsapp in 19 Billion Dollars ? why whatsapp was so much costly ? from where it was earning ? I think everyone is thinking about it.By the way same is happening with facebook too.We store photos & videos on facebook,Use to Send thousands of messages everyday through messenger and many more benefits we are taking from facebook in free.But Still it is free and will be free in future too . Why ? and how these sites earn so much of money ? 

Friends this is a very simple concept and you are even a little techie then i hope you already know  about it.The main way of earning for these sites are Advertisements.For example i have put a hording of a luxury car on a road.Many people are coming on that road.Maybe many of them won’t able to afford that car,some of them don’t want to purchase that car and many of them can be underage to afford that car (for example kids). But still the hording is there.Suppose 1 Million people have seen that hoarding but only 1000 people are interested in that car.Very Low ration i think.

But facebook  had changed this concept.Facebook is working on micro advertisements.Like if you want to advertise on facebook then the facebook will show your ads to only those people who have same interest that your ads for.They target those audience who will be interest on your ads according to fb.This is done by facebook with its large large database.In today’s world facebook is the only one who have this type of big database.and it know more then you know about yourself.It know also those things too which even you don’t know or you forgot 😀 ! But facebook have all the things in its record.For example what is you are posting now or what you posted years ago,where are you going ,what you are feeling,where you are checking in,what you are liking,commenting,you age,city,state hobbies,birthday   etc etc.So they know each and every little thing about you.

And the more big thing is that when they linked whatsapp with facebook.After this even they are able to know the persons in your contacts and what they work,their hobbies,their contact numbers,their fb accounts,job profiles,is they studying or doing job  etc.Result is this that facebook know much more then your expectation that it will show only those ads which you might be interested and 90% chances that you will click on that ads.The facebook is only one who have idea to do targeted advertisement.That is the reason facebook is getting hikes in their revenues.As i already told  Facebook have the biggest database and by including whatsapp in it,it created itself the biggest superpower.And we don’t care about ads because we are not going to leave facebook because we are getting so many free feature on one platform.If ads are appearing then who cares ?

But friends you privacy can be hacked by doing too much trust on these sites.For example you have seen many times on your facebook or instagram that sometime when you visit a local store or theatres then next day you use to see advertisements of that same store/theatre company on your facebook timeline or instagram feed ! How ? how this happen ? This is the simple thing that maybe you have allowed facebook to access you locations and they was tracking your location and they displayed the ad of same company whose store you visited.

Still if you are thinking that what product facebook have from that it making money.what facebook sell and get money ? So the product is you and me and billions fb users like us who see ads on facebook and click on it.By the way this is little good too because i will happy to see ads on my wall which i am interested instead of watching ads of those things which i am not interested or can’t afford.

So this is the way both facebook and whatsapp earn money from them and instagram is also included in it and their eyes are on you what you are doing whole day .Facebook also read your browser cookies . For example  if you are searching for any product on amazon then within next 10-15 minutes after refreshing your fb page you can see same ad of that product you searched on amazon. This is the only thing facebook is doing with great way and earning a lot of money.And if i tell you an average amount of per user facebook earning from that is $10-$12 per year means you are giving indirectly 600-700 INR per year to facebook.

This is the way facebook is earning from targeted advertising.Whatsapp is working as a support because lots of data comes from it.And facebook charge revenue from advertiser by sending ads to their interested customers only.Hope now you understand completely how facebook and whatsapp make money.Do share this post on social media and with your friends too.

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