Facebook Business Plan

Facebook Business Plan-56
Advertisers can use the wealth of personal data about users from Facebook's product ecosystem for ads.For its part, the Menlo Park, California-based company claims that it makes the data anonymous and serves the information to advertisers in custom demographic buckets.Advertisers can further slice and dice the buckets based on their branding goals.

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) (AABA), which had access to the content published by a user's friends; Amazon (AMZN), which had access to the names and contact information of a users' friends; and Microsoft (MSFT), whose Bing search engine had access to the names on virtually every Facebook user's friends list.

The exchanges took place as recently as last summer, which contradicts prior statements made by Facebook that the company had stopped selling access to user data years ago.

Again, these initiatives translate into future sources of revenue for Facebook, as more internet connections translate to greater usage and revenue.

It's hard to be sure how much money Facebook makes from user data because targeted advertisements, by definition, show users relevant ads by using their data.

Facebook made more than $40 billion in revenue in 2017, approximately 89 percent of which came from digital advertisements.

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The company announced second-quarter earnings on July 25, 2018, reporting .2 billion in revenue. (GOOG), Facebook has emerged as one-half of a dominant duo in the digital advertising game. In a series of scandals dating back to March 2018, Facebook has compromised user data, privacy, and security by granting multinational companies access to the personal information of its users.

Revenues from Facebook’s two largest markets – North America and Europe - are expected to be affected as a result of the fallout from the Cambridge Analytica scandal. In 2017, Facebook earned an average of .41 from each North American user and .26 from each user in Europe. But the scandal is expected to have an adverse impact on Facebook’s revenue in its two biggest markets in two ways.

First, advertiser concerns might lead them to pull out ads from Facebook’s plan and result in an overall decline in revenue per user.

Second, the social media network’s revenues could take a hit in Europe due to new regulation.

The General Data Production Regulation (GDPR), which requires that Facebook obtain user consent for their data, in Europe will result in a 7 percent decline in its revenue, according to Goldman Sachs.


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