How Facebook Makes Money

Companies are waking up to the profit power of Big Data. But it is not just big tech companies tracking your every move - radio and retailers are too

Emma Wall 01 April, 2014 | 10:08
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Consumers are used to a certain degree of targeted marketing. Television advertisers have always placed pertinent ads around TV programmes – children’s toys at 4pm, cash for gold during the working week, holiday providers either side of foreign location programming.

But the internet has opened the floodgates for targeted selling and an increasing number of companies not only spy on you for their own gains – but can sell on this data to boost revenues too. While as customers of these services this kind of personalisation may make you uneasy, as shareholders it’s a welcome development that opens up avenues that can boost profits.

Hussein Fazal is CEO of AdPalor a company that places adverts on Twitter (TWTR) and Facebook (FB). As one of only 13 ‘strategic partner’ advertisers on Facebook, Fazal is responsible for a significant proportion of the made-to-measure ads that pop up in your feed and line the side of your browser.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Alphabet Inc A2,872.20 USD-0.57Rating
Facebook Inc A373.06 USD-0.23Rating
Gap Inc24.20 USD1.55Rating
Industria De Diseno Textil SA31.25 EUR0.00Rating
Twitter Inc62.29 USD0.73Rating

About Author

Emma Wall  Emma Wall is Editor for Morningstar.co.uk

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