Have you ever wonder how do the free apps which we are using for many years earn millions and billions from us without charging? In this article, we will discuss How Whatsapp and Facebook earn money by providing many features without getting fail with 24*facilities. How do WhatsApp and Facebook earn a lot and why do they have invested billions to buy another company.
Also, What is the benefits of Whatsapp/Facebook for providing us the free facilities? You will read about How do Whatsapp and Facebook earn money by making us the product and earn from us in an indirect way.
The Major Source of WhatsApp and Facebook for earning money is by Targeting people. In this article, I will tell you the Real Life Example and what are their Marketing Strategies which most of them follow to earn money.
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Whatsapp was launched on the year of 3rd of May in 2009, which was a beta version, and finally, in November 2009, Whatsapp launched its final version for the users.
WhatsApp was not free to use in its beginning. Yes, you have to pay for that for its usage. It was an annual subscription.
In the year 2014, WhatsApp was owned by Facebook for $ 19 billion US dollars. Later on this year 2014 this app became free to use for the users.
Why Whatsapp became the most popular App?
- It is very fast and reliable in use.
- Very basic Installation and Interface.
- Ads Free
- less consumption of data.
- Easy of sharing data and media
How WhatsApp and Facebook earn Money?
These are very common questions that everybody is thinking or at least one time they think upon how Facebook and Whatsapp earn money?
So here is quite a Simple Answer, Facebook is the parent company of Whatsapp. Facebook’s revenue came from its Advertisements. Many brands and companies pay a huge amount to Facebook for publishing their ads on it. So a huge amount for Facebook or WhatsApp earns from it.
What strategy do Facebook and Whatsapp use to earn money?
Facebook uses the Data Science concept. By accessing your data it can better understand You. Especially your choice, your likes/dislikes, what you are searching for, and what products you are looking for. By combining all this data they target you to show the most relevant ads based on your history. For example, If you search for any products on amazon but you didn’t buy it. But when you visit Facebook then ads related to your search on amazon generally show them. So here Facebook target you to show their ad based on your history.
In WhatsApp per day approx 100 million videos and 700 million Pictures are being shared. Other than that many links are also shared. So you can imagine how closely Facebook and Whatsapp can recognize you better. So that Facebook can show you more and more relevant ads. This is the main factor of earning so now you can understand it much better than, how Facebook and WhatsApp earn money?
Example of Consideration
In other words, If you are searching for any product on the internet. Then the Facebook company will show you more ads. Such as On their news feed, on their messenger, on their WhatsApp.
So Facebook has more facilities to target you by all the different options in comparison to any other Ads service. Such as Google or Yahoo and if you see more ads about any company or organization. Then you will be more easily targeted to buy that product rather than to choose any other product.
Which one is better for Advertisement? Facebook or Google?
Both are used for different schemas. If You want to Advertise your product or your company Then Facebook works better for it. Users mostly interact with Facebook. So It will give you better results in an efficient way. Whereas, Google Ads service placed Ads in the google search result and also better for YouTubers to Publish and gain more traffic to it.
So, in these ways not only Facebook/Whatsapp earns money. But also many Websites which give you free services to earn money mostly by advertisement. Google AdSense provides ads on blogs and websites which you see on many websites. Facebook Advertisement is different from Google. This blog is for education purposes only and for the conceptual only.
How does Facebook use Whatsapp to Earn Money?
As I have already said, How does Facebook make Money? Now you have also wondering about How Whatsapp make Money? and How Facebook make money from Whatsapp?
If you have any YouTube channel or Facebook Page then you will get it better. For any Platform to run better you have to perfectly analyze your audience. Without getting information about your audience you will not grow it. The same strategy has been made by the company this is how Facebook makes money.
Whatsapp has a huge database of people with different regions, different age groups, different interest and category. This will improve the analytics of Facebook. Using these strategy WhatsApp makes money and helps Facebook to earn money through WhatsApp.
The Ad Network is so huge that everywhere the earning is done through it. Even when you are watching any shows on T.V. or smartphones. The revenue is generating though Ads basically.
Hope you will understand about How Facebook and WhatsApp earn money? and if you have any doubts regarding this then you can ask in the comment below.