Build up your profile. What you like/dislike.
Your lifestyle. Your choice of goods/services. Your socio group. Your ambitious, aspirations.
So they sell your data. Companies who want you as their customer will buy your personal information (everything divulged on the site, no such thing as privacy).
Plus the advertising you see on the site.
A successful advertising model.
Social media companies are legitimate advertising websites, just like Google and Yahoo. Google made its money is the same way as Twitter and Facebook will make their money. Web advertising via social media is a growing market.
2013 Nielsen report showed
89% of advertisers use free social media advertising
75% use paid social media advertising.
64% of advertisers expected they'd increase their paid social media advertising budgets over 2013.
May 12, BIA/Kelsey the research company, released its U.S. Social Local Media report, projecting that total U.S. social media advertising revenue will increase from $5.1 billion in 2013 to $15 billion in 2018. A compound annual growth rate (CAGR) of 24%.
Ample opportunity for social media companies to make major money.
Nifty trick for social media companies looking to profit as an ad platforms is to find the best way to insert advertising into your, the user's experience without impacting you the user in a negative way, ie its seemless. Doesnt detract from being a happy experience.
For example the ad could be related to something you are interested in, or have shown an interest in via your data.
This type of advertising is hugely important to these companies' revenue growth, going forward into the future.
More http://www.google.co.uk/search?q=social+media+makes+profit+how&oq=social+media+makes+profit+how&aqs=chrome..69i57j0.13549j0j4&client=chrome-mobile&sourceid=chrome-mobile&espvd=1&ie=UTF-8&gws_rd=ssl
http://www.google.co.uk/search?q=fb+co+makes+profit+how&oq=fb+co+makes+profit+how&aqs=chrome..69i57.9998j0j4&client=chrome-mobile&sourceid=chrome-mobile&espvd=1&ie=UTF-8&gws_rd=ssl
From advertisements people are subjected to using those social medias.
Advertisers get business from users.
advertising & data mining. everything you tell these sites about yourself they sell to other people.
