Information Systems Integration – Tony Messina

Advertisers Leaving Facebook After Data Scandal

 

 

 

 

 

 

Following the recent data breach that allegedly exposed millions of Facebook users’ personal data, large companies are beginning to pull their advertisements off the popular social media platform. Cambridge Analytica, a British consulting firm, is accused of collecting data from Facebook for political purposes. Since roughly 98% of Facebook’s revenue comes from advertisements, this news comes as a huge threat to the company’s bottom line. Companies such as Sonos, Mozilla, and Commerzbank took their ads off Facebook, and many more are considering doing the same as the company’s reputation is suffering. Along with advertisers leaving, many companies are removing their pages on the site. Last week, Elon Musk deactivated the Facebook pages for his companies SpaceX and Tesla. This comes at a bad time for Facebook, which faced criticism during and after the 2016 election due to allegations of its users spreading “fake news” and their lack of a sufficient response. It will be interesting to see what comes next for Facebook as it faces the challenge of saving its reputation before it’s too late.

What do you think? Is Facebook’s reputation in real danger? Do you still use Facebook or view it in the same way? Will you make a bigger effort to protect your data going forward? Does all this bother you as a social media user? Leave your comments below.

Source: http://money.cnn.com/2018/03/23/technology/advertisers-facebook-backlash/index.html

4 Responses to Advertisers Leaving Facebook After Data Scandal

  • As a social media user, it is bothersome that my information could be taken and used for political or other purposes, especially from a site that exists primarily for socialization. The overwhelming majority of people that you meet today have some sort of social media presence, each with information that could be breach and leaked to entities that have an interest in peoples’ unique attributes and preferences.

  • This is very interesting, and somewhat unsurprising to hear a company is doing this with our data. Facebook’s reputation is in danger because of how important people view cyber security and the protection of their information. I do view Facebook a little differently now that they’ve gotten caught doing this, it is a really bad look for Facebook, and I’ll likely use it less frequently now. This is incident could cause me to be more conscious of the information I’m giving out online. As a social media user, it is very bothersome, but spreading consumer data without consent is likely to be very common and nearly unstoppable, so looking at it realistically, I’m indifferent.

  • Personally, I do not have a Facebook account, but I do have other social media accounts so this does bother me as a social media user. It worries me that my information could be taken so easily without me even knowing it was taken. I definitely do not view Facebook the same way after finding this out and will make a bigger effort to protect my data going forward.

  • Facebook has been making changes to user’s privacy settings since this crisis, but is it too late to lessen the impact. I have even seen articles that users will be able to find out soon if there data was compromised by Cambridge Analytica. Personally, I believe that there will be many more accounts deleted in the upcoming weeks. Facebook’s big selling point is its privacy enhancements since apps like Twitter, Instagram are encouraging accounts to remain public. Millennials have already grown tired of the application and the Gen-X and Baby Boomers are now becoming skeptical of it as well. I wonder how much longer it will be until the Facebook craze runs out and another innovative company’s takes the throne.

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