Unlike Julian Assange, I don’t believe Facebook is “the most appalling spy machine that has ever been invited” but I do agree with Niall Harbis Facebok has aggressive ambitions to dominate the Web.
Steadily, Facebook is appearing everywhere all in the name of the social graph. It starts with Facebook Connect making it oh so easy to register or log into a Web site. Then, it’s the “Like” button to show your friends the places you frequent. Facebook rolls out comments to the things you say on a blog can be streamed into your Facebook account. Now “Send” makes it easy to share articles or blog posts with your Facebook friends.
So what’s the end game for Facebook beyond global domination? The simple answer is: data. All the information and content shared and posted on Facebook, the “Likes”, the Facebook comments, “Send”, etc. are sucked into Facebook ever-growing server farms. The more you interact with Facebook directly or via a Facebook tool/widget on another Web site, the more intelligence they have on you – your likes, dislikes, job, favourite Web sites, hobbies, where you go (Places), etc.
By using Facebook to connect with friends and family, you’re making a deal with the data devil. A key part of using this “free” social network is you agree to provide Facebook with all kinds of data. Even if you’re super careful about your privacy settings – something most people don’t think twice about – you’re still providing Facebook with lots of data.
So why does Facebook hungry for your data? It’s simple: revenue. The more information they have about their users, the better job Facebook can do to serve the needs of advertisers who want to target specific groups of consumers. It’s a straightforward but brilliant economic proposition that will drive Facebook’s revenue growth much the same way that AdSense has turned Google into a money-making machine.
For anyone interested in Facebook’s ability to target consumers, go through the process of placing an ad on Facebook. One of the tools is the ability to target based on age, gender, interests, geography and even workplace. All of this information is provided by users, and then used by Facebook to sell ads.
Facebook’s need for more data is a financial necessity because it still needs to convince advertisers that spending money on ads is a smart thing. Facebook is hoping ultra-targeting is a way to get around the problem that many Facebook users ignore the ads because they see it as a way to stay connected with friends and family rather than a way to learn about new products and services.
But if Facebook can deliver super-targeted and relevant advertising, maybe consumers will start to pay more attention.
In the meantime, Facebook will continue its data jihad by rolling out new services that provide value to consumers and, at the same, help the social network collect more data about you. It’s a much more palatable approach than having to focus on privacy settings with far more economic potential.
I think you’re right about the needs of the data, but I think it’s larger than data. The data is key to creating better ways of companies to market themselves to consumers. Though it seems like you’re implying that consumers don’t want to be marketed to, but by nature that what consumers are – people who want to consume.
I must say some of the adjectives you use put a much more negative slant on your message than needed to make the point. Like using “jihad.”
From my perspective, Facebook’s goal is to (1) create a world in which people can share and communicate with their friends the things they never could before. Remember back when you found a really cool website or product and you wanted to tell you friends. The thing was that you have to tell them one-by-one. This isn’t the end of the world, but it would be nice to tell a bunch at once (especially if it was something for a party or event).
The (2) thing I believe to help the business world, which may seem like a negative, but if we can get to a very targeted place, that cool hipster can find all the amazing little shops to buy rad clothing they may never of heard of any other way.
Lastly, why would you not want to “dominate the web,” who wants to become MySpace? The internet is fickle, people want to share and find new technology. If Facebook does not evolve and create new products, then they will fade to oblivion in probably a 6-12 month period.
Your points are right, but personally I disagree with your negative language. Thanks for the post.
Darcy,
Good points, and thanks for the comment! cheers, Mark
I way more worried about what google gets from my gmail account. Facebook seems way less private than an email account.
David,
You’re right, there are many other data-grabbing sources, including Visa and Mastercard!
So what’s your recommendation Mark, users pay for Facebook?
Arik: If you’re going to use Facebook, I would recommend to be aware of what kind of information/data that you’re providing it, and whether what you get from Facebook is worth what you’re giving it. Mark