Facebook's Hard-Learned Lessons

By Maurice Nagle April 09, 2018

Serving as CEO of the largest social media network comes with ups, downs and the occasional tap dancing recital. Mark Zuckerberg recently spoke with a cadre of reporters, where he admitted failure in a number of ways. Call it a mea culpa, if you will; covering the 87 million people whose data ended up in the hands of Cambridge Analytica, deleting Russian trolls, fake news and more. Coming off reserved and resolute in applying lipstick to the pig, I question if the billionaire truly accepts the defective nature of the social network’s practices.

A recent Fortune.com piece challenged Facebook, highlighting the flawed nature of its advertising model. It first illustrated the ill-advised use of data across the Silicon Valley firm’s network, and that issue, then reminded us who Facebook really is: a media company, employing a push model, selling against advertising. “Nefarious uses” take us into very murky waters.

“Platform companies and data-aggregators capitalize on individual data by selling to advertisement networks and marketers looking to target specific segments, influence buyer behavior and make dynamic pricing decisions,” explained the World Economic Forum. Food for thought; the same organization places a $3 trillion dollar valuation on the global data market economy.  

Facebook serves as a gatekeeper to copious amounts of data -- that it’s unclear whether it can or cannot ensure its security. Looking to leverage this data for revenue, it continues to support the outdated push model, neglecting an evolution taking place. Sell your magic beans elsewhere, sir, there are no buyers here.

The blockchain conversation is an important one, as it enables increased transparency in advertising, and ushers a migration from inadequate practices of the past.

While Facebook wants to offer an opportunity for users to learn about the new products and services blockchain and other up-and-coming technologies have to offer, disingenuous ad practices and malicious behavior drove the social media titan toward action.

At the end of January, it banned all, “ads that promote financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings and cryptocurrency,” Rob Leathern, Product Management Director wrote in a company blog. In taking this position, Facebook admitted to a lack of foresight in properly preparing for evil intentions by not having the proper protocol in place to protect its patronage.

The traditional method of leveraging channels to push out the masses is an old-fashioned practice that Facebook has hitched its wagon. The real rub here - aside from the blockchain bumbling -- is that legitimate advertisers and retailers receive inaccurate data, and lack real transparency into ad spend value. Advertisers are left with uncertainty.

As an April Fool’s gag, a Facebook ICO was reported. The alleged ICO was to rival telegram, but because the social media platform was already behind the 8-ball, so to speak, I can’t see how this gatekeeper could pivot practices in a way to right the wrong, and fix what is broken.    

Blockchain does offer much in the way of ecommerce transformation, positively impacting influencers, retailers and shoppers alike, but starting from a fractured foundation is no start at all, Mr. Zuckerberg.




Edited by Mandi Nowitz
SHARE THIS ARTICLE
Related Articles

Compliance: Hope Is Not a Plan

By: Special Guest    8/1/2018

Internal misalignment between compliance and business teams can lead to major problems for organizations seeking to implement new digital communicatio…

Read More

Modern Moms Shaping Influence

By: Maurice Nagle    7/19/2018

Everyone knows Mom knows best. The internet is enabling a new era in sharing, and sparking a more enlightened, communal shopping experience. Mommy blo…

Read More

Why People Don't Update Their Computers

By: Special Guest    7/13/2018

When the WannaCry ransomware attacked companies all over the world in 2017, experts soon realized it was meant to be stopped by regular updating. Even…

Read More

More Intelligence About The New Intelligence

By: Rich Tehrani    7/9/2018

TMC recently announced the launch of three new artificial intelligence events under the banner of The New Intelligence. I recently spoke with TMC's Ex…

Read More

Technology, Innovation, and Compliance: How Businesses Approach the Digital Age

By: Special Guest    6/29/2018

Organizations must align internally to achieve effective innovation. Companies should consider creating cross-functional teams or, at a minimum, incre…

Read More