Facebook makes money from selling data

User trust was crucial when Zuckerberg delivered his speech at the event on April 30, ET: This story has been updated. Type keyword s to search. Chairman’s Club. Rates and Bonds. Oculus VR.

The Cambridge Analytica fiasco in brought renewed public attention to the data collection practices of Facebook FB. People began asking questions. Why had Facebook allowed this to happen? It seems like there should be a substantial amount of money at stake for Facebook to risk a public relations disaster. It is difficult to be sure, but we’ve made our best guesses. It was designed to provide an insight into the multibillion-dollar data makea industry.

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Even if you were watching, it’s entirely likely that you missed a crucial, brief segment around the two-hour mark, where Senator John Cornyn asked Zuckerberg about how Facebook handles ex-user data. Though somewhat unrelated to what Senator Cornyn asked, Zuckerberg’s answer was a fascinating, concise look into how Facebook turns its vast quantity of user data into profit. We don’t sell data to anyone. Indeed, Facebook makes it money through advertising. Facebook doesn’t provide data to advertisers — it does the work for them. So, if an advertiser comes to us and says, ‘All right, I am a ski shop and I want to sell skis to women,’ then we might have some sense, because people shared skiing-related content, or said they were interested in that, they shared whether they’re a woman, and then we can show the ads to the right people without that data ever changing hands and going to the advertiser. In the wake of the Cambridge Analytica scandal , which revealed that at least 87 million Facebook users had their data used without consent by a political firm to influence elections including the US Presidential election , general users, celebrities, tech executives and politicians have begun openly questioning Facebook’s handling of user data.

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Even if you were watching, it’s entirely likely that you missed a crucial, brief segment around the two-hour mark, where Senator John Cornyn asked Zuckerberg about how Facebook handles ex-user data. Though somewhat unrelated to what Senator Cornyn asked, Zuckerberg’s answer was a fascinating, concise look into how Facebook turns its vast quantity of user data into profit.

We don’t sell data to. Indeed, Facebook makes it money through advertising. Facebook doesn’t provide data to advertisers — it does the work for. So, if an advertiser comes to us and says, ‘All right, I am a ski shop and I want to sell skis to women,’ then we might have some sense, because people shared skiing-related content, or said they were interested in that, they shared whether they’re a woman, and then we can show the ads to the right people without that data fcebook changing hands and going to the advertiser.

In the wake of the Cambridge Analytica scandalwhich revealed that at least 87 million Facebook users had their data used without consent by a political firm to influence elections including the US Presidential electiongeneral users, celebrities, tech executives and politicians have begun openly questioning Facebook’s handling of user data.

Facebook now admits fault for allowing third-parties to access makse data inappropriately, which is what led to companies like Cambridge Analytica possessing user data in the first place. The company has since shut down loopholes in its social media service that allowed third-parties to «scrape» data from its users. All that said, Facebook still directly relies on user data to make money — it’s sellong not in quite the way you may have thought. Account icon An icon in the shape of a person’s head and shoulders.

It often indicates a user profile. Login Subscribe. My Account. World globe An icon of the world globe, indicating different international options. Ben Gilbert.

Facebook CEO Mark Zuckerberg testified before Congress for over five hours on Wednesday, where fscebook answered questions from senators on a broad range of subjects. Facebook makes money from selling data an exchange with Senator John Cornyn, Zuckerberg laid out a simple explanation for how Facebook makes money with user data.

Zuckerberg’s explanation is a concise walkthrough of how your data is turned into profit.

Department of Justice DOJ. Vernal and Klimt did not respond to requests for comment. It seems like there should be a substantial makds of money at stake for Facebook to risk a public relations disaster. Barter or Bartering Definition Barter, or bartering, is the act of trading a good or service for another good or service without the use of money. Virtual reality is another technology kakes viewed in marketing circles as a great consumer outreach tool. Preferred Stocks. This report has been prepared and published in conjunction with Duncan Campbell U. Table of Contents Expand. Are selliing a humble subsistence farmer who fashions his own footwear and ventures beyond his native village only to barter handicrafts for cloudy moonshine and used bicycle parts? How much would such an option cost? Y2K: An Oral History. However, after a few years, Facebook decided the app developers were getting more value from the user data they extracted from Facebook than Facebook was getting out of the app developers, the documents .