Facebook Inc. is no longer a social networking site but its' own entity of 845 million users. When you have a business attracting that large of a market, the next thing to come are surely the advertisers. Each Facebook page is a veritable gold mine of information, from favorite movies and music to what causes individuals feel strongly towards.
The struggle comes when Facebook has to figure out how to let advertisers use this information without users feeling like their privacy is being violated. It has to be a consumer's best friend giving them everything they could want in a social networking site while at the same time taking everything that consumer gives them and selling it to advertisers. Currently, it delivers "more than one-third of the ads seen online" and "promises that 65 million users" can see a particular ad according to Geoff Klapisch, an advertising professor at Boston University. The problem is that Facebook earned about $4 per user last year but with a user-base larger than the European continent that number has to increase greatly. It's main competitor is Google which sold $26 billion in online advertising. Google's ads not only are seen on its' website but through its' Adsense program, all over the internet. Google triumphs over Facebook in the fact that once you type in a search request Google will give you an ad pertaining to your inquiry. Facebook, on the other hand, cannot respond as quickly. Google also does not have to tow the same lines that Facebook does each and every day.
Facebook has to balance between privacy and marketability to companies. Users will get turned off if they start to see Facebook as a data mining plant rather than a place where they can connect with friends. On the other hand, if businesses believe that Facebook cannot provide them with the information they need, they're more likely to invest more into Google. Last year, Facebook dealt with complaints filed over the lack of notification before changing its' privacy practices. The minds at Facebook know that people are watching so they cannot try to sneak anything by users. If they can find a way to provide the service users want while having those same individuals be comfortable with their information being shared to businesses then Facebook might just have their ace in the hole against Google.
Full article can be found at: http://articles.boston.com/2012-02-03/business/31016869_1_facebook-advertisers-users-choice
Facebook definitely has to find that fine line where advertising crosses over into invasion of privacy. I'm not sure if Facebook users will ever be comfortable with their information being shared with businesses but it is definitely important for Facebook to test those waters in order to adequately compete with Google.
ReplyDelete--Toni-Ann