Facebook’s is a $500 billion company. Over 25,105 people work’s at Facebook. But actually more then this 25,105 people you and me and many other people who spend there time on Facebook.com are the actually one who run the company and help it to earn more. The social network has monthly 1.59 billion users users on it’s website. It around 50% of the 3.2 billion internet users globally and 21.5% of the global population.
Facebook is a digital ad brokers of your user data for targeting the ads. Your data value as an advertising target. Facebook understand your behavior and area of interest with the help of your user data. User data basically includes name, address, telephone, email and so on. When Facebook fully understand your likes and dislikes, it starts showing you relevant ads which belongs to your interest over which you most likely click. In 2017, the average cost per click for an online Facebook ad was $1.72 .
Note that Facebook doesn’t directly sell your information, it “let businesses and organizations connect with the people who are most likely to be interested in their products and services,” as its ad education portal explained.
But how much your user data value to Facebook ?
Facebook profits off of its 1.4 billion daily users in a big way. According to its most recent filings with the Securities and Exchange Commission, the average revenue per user in 2017 was $20.21 ($6.18 in the fourth quarter alone).
You may be surprised to hear that the personal data of a US resident is worth $13.54 in each quarter to Facebook. It is likely that, on average the user data of a US resident is worth to somewhere in the region of $2000 — $3000 per year. Whereas the average personal data of a European is worth $4.5o every three months. In the Asia-Pacific region it is only worth $1.59 to the social network. If we talk about rest of the world including most developing nations then it is only worth $1.22 per user.
The reason the sums vary so much is primarily down to the amount of advertising money spent in each region. The US was worth $2.8bn in advertising revenue to Facebook last quarter, while the second biggest Facebook market, Europe, was worth only $1.4bn.
If only 20 percent of the total 2,130,000,000 global users are targeted by one ad campaign for a token amount of $0.20 per user data, the amount of money to be made comes to $85.2 million.
If you are interested in knowing how much your user data worth to Facebook, check out this amazing calculator made by Financial Times that allow one to check the worth of an individual’s personal data.
For the analysis, it will ask you some basic data points that Facebook users provide voluntarily, like age, gender and location. It generate the result based on the quality of user data like if you change the job profile to company’s owner it does not make much difference to the data value. However, changing the relationship status, from “Recently married” to “Engaged to be married” spikes up the data value to more than $0.30, a 33 percent bump in data value compared to the previous case.
Have a great day, Enjoy !
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