How do Facebook Ads Work?

It is fascinating that when you're on Facebook, you see a lot of ad's that you like. Things you may click on or things you've just been searching up. Does this happen for everyone? Or are you just blessed with a fortune to have good luck on advertisements?

No! You're not. You're actually lured into these adverts by Facebook. Pretty cool right? No? Oh dear.

Anyway - Facebook uses a very skilled system in adverts. In brief, you click; like; look or write something in Facebook or around the web (on a Facebook account) - Facebook notices this and if there's any advertising, they'll put it on your homepage. It basically improves likely clicks, which in turn increases Facebook's income. Pretty awesome? Facebook aren't the only one's to do this - other highly-viewed websites such as YouTube comply to this; probably because Google own YouTube though.

Let's use Geoff as our example. Geoff is a keen golfer and loves buying the latest models. He also likes old war-totems and other mumbo-jumbo. He uses the web a fair bit and has been searching the internet for golf clubs on recommended websites. He checks on Facebook and boom! Golf clubs for sale and other golf accessories.

Within the time it has taken Geoff to click off the golf-website and onto Facebook, Google has already noted that he 'may' like golf. Geoff has the decision to not click on it, but being a keen golfer, sees no reason not to. He uploads a picture onto Facebook of some old war-totems and captions it with 'old war-totems'.

Google again recognises it and adds it to his list of 'maybe' he likes this. But, war totems being a very niche market, golf is probably more on the market. So I doubt there'll be any advertisement for that.

So, in short, Google is watching everything you do. If you ever enjoy something a bit too much, they'll capitalise and offer it everywhere. Facebook will help with this, watching everything you do on Facebook. I remember once I wrote about hating 'The Only Way is Essex', a boring reality/drama based in Essex. Next thing I know, their Christmas single was advertised on my homepage!

Yes, for the most of it. They do get a valiant amount of support of other companies, who believe their shares will be worth much more in a few years time. This present day, 1% of Facebook costs around £100 to purchase. Yahoo! about 3% of Facebook and Microsoft has 1%, there are others, but I cannot remember their names.

Investment in the company and offerings are also ways of earning money, although Zuckenberg himself has stated Facebook does not rely on donations or fund-raisers, like Wikipedia does.

Around 85% of Facebook's income is from advertising. The others are online video games, where people can purchase premium or 'coins' for real money and donations/shares.