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It's Science: Facebook Knows You Better Than Your Friends

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It's Science: Facebook Knows You Better Than Your Friends Image Source: LinkedIn


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If you've liked more than 70 items on Facebook, it knows you better than your friends. Image Source: Flickr/Erik Cleves Kritensen


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150 likes and it knows you better than your family. Image Source: Flickr/James Thompson


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300 likes and it knows you better than your spouse. Image Source: Flickr/Brian Tomlinson


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That's according to a recent study from researchers at University of Cambridge and Stanford University. Source: PNAS


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When Facebook announced its 1 billionth user in 2012 ...


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When Facebook announced its 1 billionth user in 2012 ... It also said it had accumulated over 1.13 trillion likes. Source: Facebook


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Keep in mind likes have only been around since 2009, so the average is likely even higher today.


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Suffice it to say, Facebook probably knows your personality better than anyone in the world.


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So, what can Facebook do with all its data?


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It can show you more interesting items in your News Feed.


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It can use the data to target advertisements.


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And ad targeting is improving. Average ad revenue per user increased 27% last quarter Ad prices increased 220%


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But Facebook's personality data coupled with its social graph could enable Facebook to enter other verticals.


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It could license its data to researchers and organizations that require people to submit personality profiles.


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Twitter generated over $100 million from licensing its data last year.


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And Facebook has five-times as many users.


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Facebook could create a recruiting platform to connect users with jobs that suit their personality.


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LinkedIn generated $1.3 billion from its Talent Solutions product last year.


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And its users are hardly engaged compared to Facebook.


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Facebook could even build a dating app to take advantage of its personality data and social graph.


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The online dating industry generated $2.2 billion in the U.S. alone last year. Source: Washington Post


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Few other companies can boast personality profiles as accurate as Facebook's.


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Search history is another good indicator of personality.


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As is purchase history.


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Facebook is working to enter both of those markets.


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And its reach is as wide as any company in the world.


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So, it knows more about more people than anyone in the world.


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And it understands you better every day.


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The researchers believe that increasing the number of likes beyond what was available in the study could further boost the accuracy of their personality model.


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So, click that Facebook like button!


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The next billion-dollar iSecret The world's biggest tech company forgot to show you something at its recent event, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early-in-the-know investors! To be one of them, just click here.


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