Companies like Facebook do not make any goods. They offer a service by letting users create content that they can then, share with their social circles.
It is hence, a social content creation service. That is the equivalent of a newspaper company allowing its readers to amble into its printing presses, anytime, and create newspapers for their friends, hyper custom-made publications that cater to very, very narrow slivers of readers.
Facebook offers this gratis. Yet, it makes pots of gold. And how does it?
To continue the newspaper analogy, it is in on the walls of the printing facility where the money is. As hordes of people rush in and out of a busy printing house, with copies of their little newspapers clutched under their arms, they are exposed to scores of ads plastered of the walls.
To continue the newspaper analogy, it is in on the walls of the printing facility where the money is. As hordes of people rush in and out of a busy printing house, with copies of their little newspapers clutched under their arms, they are exposed to scores of ads plastered of the walls.
Facebook charges its advertisers, who are the makers and sellers of goods, to post ads in places that are hard to miss—the walls.
(Via OWNI.eu)
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