Thursday, April 26, 2012

Facebook and Possible Solutions...


An article from Cnn.com explains the changes Facebook is making to it's Statement of Rights and Responsibilities. It was originally assumed that the changes are being made with the intention of decreasing users' paranoia about how the information and data on their page, as well as their social connections, is being used.

Although these changes and their intentions were explicitly mentioned to benefit the end-user, it just so happens that there are essentially zero changes taking place in how Facebook actually uses and collects data. It is now clear that Facebook only announced it was a change to the “Statement of Rights and Responsibilities” that was occurring, as opposed to a change to the Privacy policy, which is where the terms of data collection and usage is contained.

Many people are concerned with Facebook and how the data could be used, but you must remember that Facebook is a free service, and where they make their money is advertising.  I'm not suggesting that there doesn't need to be any clear terms or opt-out as far as the data mining is concerned. I do believe that internet privacy is a big issue today, and that there needs to be a consensus among the big corporations AND users about how to deal with it. However, I do understand that Facebook does require to use your data for advertising as that is their main revenue source.

Despite Facebook's necessity to use your data in order to increase their bottom line, I believe that fundamental changes can be made in order to ensure a more solid policy of data usage. For example, as opposed to sending data and trends out to advertising companies, delegate the task of 'figuring out what ad you are more likely to click on' to the entity it will appear on.

For example, perhaps Facebook could simply have a list of “major categories” that percentages of their users belong to. Instead of broadcasting specifics about each and every user, give the advertising companies this information, so that they can have several different ads that target certain categories. Then, on the Facebook server, it is determined with random number generators and some algorithm, which advertisement will be shown based on which categories you belong to and which categories of advertisements are in this week's line-up.

I think a solution much like this could be extremely successful and also may instill more competition among advertisers. To me it's like a Pot-Luck dinner. If I am a 'Sports enthusiast' 'Computer Programmer' 'College Student' and 'Socially inclined' for example, there will be a random chance of advertisements that fit these categories being shown on pages I visit. The advertisers would only need to know about the statistics of how accurate the system is, which will in-turn be similar to 'prime-time' advertising. Say for example 70% of users that are “SPORT ENTHUSIASTS” click on 'sport's memorabilia and tickets' advertisements” This would result in competition in the “sport enthusiast” category of advertising thus increasing the prices of putting your advertisement into that week/month's line-up to show these advertisements.  Facebook would then have no reason to broadcast your personal data, only statistically analyze it PRIVATELY and make the findings public to advertisers rather than, for example, using tracking cookies.

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