Are Social Media Users Customers or Products?
2026-11-07
Facebook, Instagram, X, and TikTok are free to use. But how do these companies make money?
Are Social Media Users Customers or Products?
Facebook, Instagram, X, and TikTok are free to use. But how do these companies make money?
Technically, they are software development companies. However, their business model is very different from traditional software companies.
Social media platforms collect information about users' interests, activities, and behavior. They use this information to help advertisers reach specific audiences.
In other words, advertisers pay, while users provide the attention that generates revenue.
I run PSPINC, a software development company. We develop software, websites, email hosting, and web applications to solve customer problems. Our customers pay us for the services and value we provide.
Social media companies, however, often make money by keeping users engaged as long as possible. What benefits advertisers may not always benefit users.
Free does not necessarily mean you pay nothing. You may be paying with your time, attention, and personal information.
So, are you the customer, or are you part of the product?
The difference is not in the software they develop, but in what they sell and who pays for it.
Disclaimer: I use AI as a tool to help create images and proofread my writing. However, the ideas, opinions, experiences, and messages in my posts are my own. AI does not generate my posts for me. It simply helps me present my own words and ideas more clearly.
Kenichi Uchikura
Founder & CEO
Pacific Software Publishing, Inc. (PSPINC)
Uchikura & Co., LLC.
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ABOUT THIS BLOG
I was born and raised in Japan and have spent most of my adult life in the United States. Through this blog, I share Japanese culture, language, expressions, and wisdom. My goal is not to say one culture is better, but to explore different perspectives and what we can learn from them.
Your comments are always welcome.
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Kenichi Uchikura
Founder & CEO
Pacific Software Publishing, Inc. (PSPINC)
Uchikura & Co., LLC.
..-･**･-....-･･-..__..-･･-....-･**･-..
ABOUT THIS BLOG
I was born and raised in Japan and have spent most of my adult life in the United States. Through this blog, I share Japanese culture, language, expressions, and wisdom. My goal is not to say one culture is better, but to explore different perspectives and what we can learn from them.
Your comments are always welcome.
..-･**･-....-･･-..__..-･･-....-･**･-..