Facebook is the ultimate social network. You put all your data into it and have a completely parallel life online. I might go to the extent of saying that our facebook accounts are our online mirror image. And that is exactly because most of the users tend to put accurate data onto their profiles. But the information we provide to facebook isn’t worth anything to us. But to the world’s largest social network, this information is a diamond mine.
Facebook makes money selling the information to businesses. And then these businesses use that information to figure what their customers want. Businesses also put up ads on the facebook to judge the response of their customers. This makes the site the ultimate social laboratory. The demographics sold by Facebook are used by businesses to fine tune their advertisements such that sales and exposure are maximized.
If you look closely, Facebook is a social laboratory for businesses in the guise of a social network. But as long as it fulfills its purpose of connecting the world, it is a great experience.