Nov 12 2007
Implications of Facebook decision to not pursue a permission-based strategy for its data mining operation
Marketers have understood that it was only a matter of time before Facebook would make its user profiles available for data mining with the express purpose of behavioral targeting. But it also appears that they have will have difficulty with the implications of breaking their implied confidentiality contract with the millions of users.
The mainstream press has picked up on this issue and there is an effort to define the implications. But I believe that most users will not understand the nuances of how data is shared and the protection afforded by data mining in aggregate. Perception is reality and Facebook users are starting to revolt because they feel betrayed.
This post on the Dewayne-Net Technology blog titled The Facebook Bait and Switch sums up the sentiment better than I can:
Facebook is supposed to be an community where you can express who you are, and friends freely communicate. But it’s being transformed into a zone where advertisers with the biggest budgets can harvest your data, take advantage of your network of friends, and deliver targeted marketing and branding commercials. Facebook’s new approach combines behavioral targeting with viral marketing. That system threatens everyone’s privacy. Facebook’s users are viewed as merely grist for a big data mining mill designed to sell targeted ads. This is a real violation of trust. No one is saying Facebook can’t make money. But it needs to be done in a way that respects the privacy and values of its members. The time to express displeasure is now.
I believe that Facebook has broken a covenant with its community by not offering a permission-based solution and will pay a price. It will be very interesting to see how this plays out.
