How facebook earn money 

Facebook is a website and social networking site which allows users, who sign-up for free profiles, to connect with friends, work colleagues or people they don't know, online. It allows users to share pictures, music, videos, and articles, as well as their own thoughts and opinions with however many people they like.

Facebook was started on February 2004, Cambridge, Massachusetts, United States by the harvard University student named Mark Zuckerberg. 

Facebook's market capitalization stands at $450 billion and its stock price trades in the $155 range. 

Popularity of Facebook 

As we know that facebook change the entire world of social network sites. Before facebook another social network sites like Orkut, Nimbuzz etc are simply replaced by facebook. 

According to the 2019 recently data, 2.23 billion monthly users on Facebook, 1 billion users on Instagram, 1.5 billion users on WhatsApp and 1.3 billion users on Messenger. This is huge big number that facebook earn. 

There are 1.74 billion mobile active users I(Mobile Facebook MAU) for December 2016 which is an increase of 21% year-over-year (Source: Facebook as of 02/01/17). In Europe, over 307 million people are on Facebook.

Facebook also did not add new daily active users in U.S. and Canada, or at least not enough to show growth. ... 2.23 billion monthly active users and 1.47 billion daily active users (both up 11 percent from the previous year)

Okey, we understand facebook has large number of audiences. But really question is that how facebook earn money. Facebook provide free service to it's user then how they earns? Let's come on guys dig this topic deeply. 

How facebook earn money? 

As we know facebook try lots of coding and applied a new type of technology like artificial intelligence to make their user experience good and for their company growth. But the concept of earning of Facebook is very old even our ancestors use it that is advertising. Facebook earn money through Advertisement. Facebook earn their profit revenue from advertising other companies product or service on their website. 

If you use facebook then you may observe the advertisement in between your home feed. If you have a website or product or any service oriented company and you want to increase your sell then you can advertise your website, product or service on facebook. Facebook run their advertising business through Facebook ads. It is facebook's officially ways to show your ads on facebook. 

The fundamentals of Facebook business is similar to Google. Google is also earn money through Advertisement. 

Why all services based or product based company use facebook ads?

As we know, facebook is social media gaint. It own about 2.2 billion user which include every type of people. Company want customer so that their sales increases. Since, facebook offer them their targeted audience. 

Let's understand this concept by an example. Suppose you have a company which makes pen and you want to advertise your product so that your sales increase. Now you tell me what type of customer you want? Surely you want those customers, who are interested in your product like students, lawyers, employees or a literate person and what if i bring your customer or your targeted audience to you. Surely if customer likes your products then they will definitely buy your products. 

In the same way, The Facebook works. They bring targeted audience which wanted by companies so that they sales their products because you never sell a product to those who are interested in your product and you can only sell to those who want your product. 

Facebook basically helps to meet companies to their targeted audience and for their service facebook charge money from the company in the form of advertisements. 

Advertisement is one of the best method  for earning money for the companies in that time. 

Even the big companies like google, facebook, amazon, twitter, Instagram etc earn  money through advertising. 

Famous products of facebook 

• WhatsApp. 

Facebook purchased WhatsApp for $19 billion in 2014, making it the largest acquisition the company has made in recent years. WhatsApp is a wildly popular instant messaging platform in the world that advertisers would love to crack, given its pervasive use not just in the U.S, but all over the world. Facebook is ramping up a new business model that would charge advertisers a fixed price for engaging with WhatsApp customers.

• Instagram

Purchased in 2012 for $1 billion, this photo-sharing app boasts 400 million users and is expected to be a huge linchpin for Facebook in the burgeoning photo app digital marketplace. While Instagram hasn't actually produced much revenue for Facebook before to this year, analysts expect that to change, estimating between $10 billion and $16 billion by the end of 2018.

• Facebook messenger 

Facebook separate it's chats system in the form of an application available on both android and IOS. On Google play 1 billion downloads has been done. Facebook messenger is widely popular among user like WhatsApp and Instagram. 

Future plans of facebook

Facebook is now working on artificial intelligence to give better experience to it's user but facebook artificial intelligence program is failed but it is still under construction. All aim of Facebook is to provide more service to its clients and user. 

Facebook want artificial intelligence to understand more about it's user likes and dislikes. This is very crucial factors of marketing. If you know about a person's like or dislike then you can sell anything easily. In the last, you would say, This program increase more profit of Facebook and Facebook also able to understand feelings of its user in more better way. 

In the last, I would say technology is developing continuously nonstop. So, we must have to keep update with upcoming technology so that we able understand this world in a better manner

I hope you guys like this article if you have any queries, questions or suggestions related yo your topic then please drop a comment below.