How Whats-app Earns Money

in #steemstem7 years ago

Introduction

Whats-app is free to install, to use, one must not have seen an advertisement in the app until today, one can find very good features (messaging, sharing photos, videos, creating family groups) then one must wonder that how is it that whats-app is earning money or helping to earn money? and why was it bought for $19.3 Billion by Facebook.

This today's post topic. (Data until July 2017 ... Could not find more latest image :) )

How are Both Connected and Why?

Facebook introduced a very unique way of advertising the products, while watching television one comes across advertisements but those advertisements could happen to be useless for the viewer if it does not serve the purpose of that user or hoardings of a McDonald's installed nearby roads could mean nothing to people who love having home cooked meals.

So what does Facebook do different? Instead of selling the product to user, Facebook sells the Users to companies.

Facebook knows your Profession, depending upon your profession it knows your purchase range of Products, type of Products you like, age group, gender, location, interests of users, what he likes and dislikes, what he wants to discuss and depending upon those interests it shows him specific advertisements which are in-line with his likes and dislikes.So it uses "Micro-Advertisements" i.e. Targeted Advertisements.

So if your phone location is "On" and connected to Facebook then Facebook knows exactly which places you visit to shop and based upon the Brands which are paying Facebook to advertise then you can get notifications when some "new product" is available by that brand.

So where does Whats-app fit in? Once whats-app has been connected to Facebook then Facebook knows everything about those whom you contact, has access to your contacts, it knows depending upon your contacts whether you are a student, Business-Man, go to university or College so when whats-app gets connected to Facebook then it increases already build up Database of Facebook.

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SO we use alot of data daily on Whats-app, it includes our Research Interests, our Shopping Habits, Places where we Shop and other things important to us in our day to day life.

When we type our message it passes through Whats-app servers and then to our Destined number, whats app server generates "Analytical Data" based upon the "Key Words" and thus it helps Facebook further to "Target" us for its advertisements.

In Conclusion

App-store /Play-Store of iOS and Android OS also pay for downloads of app. If you are a common user of apps and sharing not very sensitive information then this is very beautiful use of Facebook/Whats-app users for advertisements, it is clean and artistic and it helps Consumers (us) and Producers both.

About Me

My name is Fahad and I am an Electronics Engineer. I am currently working at a Power Plant in Pakistan as Junior Engineer in Instrumentation and Control Division (I&C). My duties include Maintenance and Debugging of Distributed Control System (DCS) and Programmable Logic Controllers (PLC) of whole Plant.

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