Techcrunch:facebook can give up advertising to make money from data

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Lead: Science and technology blog TechCrunch Chosi Consting, a technology journalist who engages in social product coverage, said in a Sunday article that Facebook could boost revenues through data-not traffic-through E-commerce products such as mobile ad networks and gifts. That means the number of ads on Facebook may one day be zero.

The following is a summary of the article content:

Facebook has to show more ads to get more revenue, right? No, or at least not necessarily. If you can expand mobile ad networks and gifts E-commerce products, Facebook can rely on data rather than traffic to boost revenue.

Some may say that it is wishful thought. One months ago, there was also a belief that Facebook's earnings outlook was grim because its user base was moving from PCs to mobile devices. For PC users, Facebook can display 7 ads per page and earn 30% revenue from game payments. Many in the industry believe that in order to gain revenue through mobile devices, providing more advertising is the only solution.

But Facebook moved quickly, first testing mobile ad networks on zynga.com, and a few weeks ago allowing advertisers to use their data to provide accurate advertising on non-Facebook mobile ad networks and apps (Facebook mobile ad networks).

In Thursday, Facebook also launched the mobile social e-commerce service gifts, allowing users to buy goods and send them to friends on the site. Facebook has added a new revenue source by acquiring a specific percentage of revenue from each transaction.

With these products, Facebook has shown that it can get revenue in a second way.

The original approach: gain revenue through the amount of time users spend on websites and apps. The second way: Use the vast amount of user data available to gain revenue.

Many web ads are disruptive to users, and Facebook's ad network allows advertisers to use information about the target's sex, age, address, work experience, hobbies, friends, and application activities to provide the ads that users need. This means higher revenues without the need for more advertising.

Gifts analyzes the information that users give to their friends who buy gifts, and Facebook can recommend them if a user is ready to present them to a user who is congenial to the friend's interests and interests. The more Facebook knows, the better the recommendations.

This is not to say that the ads on Facebook will soon disappear, but this may be a direction. It's great for Facebook to show fewer ads, or at least not show so many ads. For example, the user experience would be better and there would be more users browsing and sharing.

For most people, Facebook's use of their data to improve advertising is not a big deal, and they don't even know what's going on. But there is always a small number of people who disagree, and Facebook has experienced such problems, which must be faced. But so far, this has not caused much problem.

So for today's Facebook, the balance between the user experience and the number of ads is not a "0 and a game." In fact, if Facebook is able to make the most of the data available to it, Facebook will one day have a zero number of ads.