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.