16 Nov Social Media Bling – How does Facebook make his money
Let’s be honest – what’s the longest time you’ve gone without checking your social media platforms? (No cheating – we won’t tell!) If you’re reading this in a public space, take a moment – glance up from your digital device, and take a look around you – if you’re in a coffeehouse, bar, or even a restaurant, how many people do you see around you who have their digital devices in arm’s reach, either placed on the table in front of them, or who are actively typing, tapping, or swiping away?
According to the Pew Research Center, over 65% of U.S. adults own either a smartphone or tablet – an increase of 100% in only 5 years. Whether emailing, Skyping, or sharing the latest news on Facebook, Twitter, or SnapChat, the quality of life of the average American has become synonymous with the strength of their WiFi signal.
With virtually every moment of each day connected to the worldwide web, what, exactly, are Americans doing with their online hours? Checking emails, perhaps? Blogging? Writing that long awaited, anticipated, and dreamed of great American novel?
Incredibly, more than 20% of the average American’s time is spent networking – whether perusing their bestie’s vacation pics, their sister’s baby shower, or that long lost college roommate’s slightly presumptions declaration of their new job promotion, the blood, sweat, and tears of Americans are shed in their social media profiles.
But how much did you pay to set up your Facebook profile? (Nothing, you might murmur.) So just how does this giant of the digital era make its money?
Facebook: The Marketing Secrets
In just the last three months of 2015 alone, the empire that is Facebook brought in almost 6 billion dollars – that’s a hefty chunk of cash.
But, how do they do it? As you might be aware, virtually anyone with a paltry WiFi connection and a half-functioning mobile device can within seconds create a free profile.
The short answer? Paid advertising. A business, personal, or event profile is free, but targeted ads are where the big bucks are for Facebook. Get this: Let’s say you’re a start-up restaurant, struggling to compete in a town already flooded with foodie havens. You’re in luck: there’s no better bet than Facebook ads. You decide the scope of your investment – then, Facebook estimates your approximate ad reach based on the the amount of consumers already visiting your page. $300 / month all you’ve got to spend on ads? Depending on your organic activity, that seemingly small investment might reach you as many as 20,000 new accounts! The selling point? These ads will only appear to consumers who are already interested in your niche. So, are tacos you thing? Rest assured – with keyword selection, your ad will only appear to individuals lusting for the newest taqueria.
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