how do porn companies make money when their product is free?
In: Economics
How does Google, Reddit, Facebook, Twitter, make money when their product is free?
You are the product. Your data is brokered and you are served advertisements based on what you’re likely to buy. The “free” platform is valuable because it has this data (that you give it by signaling to the platform that you like certain things), and it has your attention—both of which advertisers pay the platform for to place ads in front of you.
What data does a porn site have? It knows where you live (hot singles in your area!), it knows what your gender preferences are (hot gay singles in you area!), it knows what your specific attractions are (hot gay blonde singles in your area!), etc. And all of that data is used to serve you ads.
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