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Scope of Face-book

Social networking sites are a boom these days with increasing number of people signing up on social networking sites such as Twitter, face book and Orkut etc in order to stay updated online and gather their known on an online platform. These sites are gaining more and more popularity among the youth, students, professionals, businesses men etc all have their profiles on these sites due to the fact that they can stay connected with their known ones and update their status periodically which serves as an effective linking tool helpful in domestic and professional front. Globalization has shrunk
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The primary source of company’s revenue is advertising. Face-book places ads on the right corner of the page and user information is collected on the basis of likes and dislikes, activity on the site, preferences etc and that is how advertisements are tailored according to your preferences and activities on the site. Every time you visit the site, adverts are displayed on the basis of your own interests and preferences which help the company to make profits and deliver customer or user satisfaction. Despite of the fact that FB has a lower click through rate (CTR), it still enjoys a great traffic on the site is a great commercial platform for advertising companies, delivering the desired success and customer satisfaction. Even if the displayed adverts are ignored by the users, they still make an impact on consumer or user mind and build brand awareness. Companies also earn profit through sharing and selling user information to their partners and Google is an ideal example of this phenomenon however Face-book has not yet planned to follow this. Some opine that this compromise on user privacy violates privacy laws however the given information is said to be anonymous. The company is doing great business and is worth $ 100 billion today (Robertson 2012).

It should be noted that Face-book does not make all of its profit from adverts. As recorded in the first quarter of 2012, the company earned 82%
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