Virtual treasure trove of targeted advertising

On Facebook, people talk about births and deaths. They share party shots, ultrasound scans and deliver news about serious illnesses in a way that was unimaginable just a few years ago. Facebook doesn't want that openness to end, which is why the company has been trying to put its privacy problems behind it. But a big settlement with the Federal Trade Commission is once again putting this thorny issue front and center for the world's biggest online social network. Here are some common questions and answers about Facebook's privacy practices and what they mean for users. Why is Facebook constantly pushing people to share things? Even before it became a big business making billions in advertising revenue, Facebook's purpose has always been to let people "connect and share" — its motto — with their friends, families and acquaintances. Facebook's view is that people want to share more and that the company is giving people the platform to do so. CEO Mark Zuckerberg said in a blog post Tuesday: "We made it easy for people to feel comfortable sharing things about their real lives." So this isn't all about making money? Facebook, which is expected to go public next year in what could be one of the biggest IPOs in history, makes the bulk of its revenue from online advertising targeted to its users. The ads users see are based on things they share on the site. Research firm eMarketer estimates that Facebook will bring in $3.8 billion (Dh13.96 billion) in worldwide ad revenue this year and $5.8 billion in 2012. As a privately held company focused on building up its technology, Facebook has not made profits its outright goal. However, as a public company with profit-seeking shareholders to answer to, Facebook's goals could change. How does Facebook use the information people share to make money? Facebook, like Google and other companies that rely on advertising, targets ads to people based on their interests. Businesses can pick who they want to show their ads to — by location, age, hobbies and other things they share on Facebook. People are more likely to click on ads that are relevant to them, making Facebook a virtual treasure trove of targeted advertising.