Facebook Selling Your Data.

There is a lot of online chatter and speculation that facebook is ’selling costumer data’. The discussion is primarily around these articles:
Networking Site Cashes in on Friends.
Facebook Plans to Make Money by Selling Your Data.
Facebook Sells Your Data.

No need to fear, Facebook is basically reintroducing its polling tool calling it an engagement ad. Nothing is really changing, people don’t have to participate in the polls - they’ll just show up if the user fits the profile.

But aside from the rumors buzzing around about selling data, challenges remain for all three parties; facebook, marketers/brands, and users. Facebook needs a better revenue model, marketers and researchers would love more insight, and users don’t want you snooping around in their business.

IDEA:
What if Facebook introduced a subscription-based model to ‘listen’ in on the conversation about a product or brand - but, ONLY if the brand or product is mentioned in link sharing, status, comments, etc. Companies are already scanning and engaging in public conversation on twitter, but there is a huge amount of conversation happening behind the walled garden of Facebook (conversation tied to way more user detail).

Users that mention a brand or product could get offers, perks, polls etc. Facebook users are marketing for you (or against you). This kind of idea would be a much easier sell - in a way don’t brands have a right to know what’s being said about them? If you’re an influential individual with a large network surely brands will want to make you happy. And if enough people talk bad about a product or offering, they’ll want to change it, drop it, or make it better.

A better approach than speculating on the persona or demographic who loves or hates your brand - as a company could easily be wrong about who really fits their mold, or how their product is being used. Providing insight that any company should be willing to pay for. Introducing a feature that users should be willing to accept… I think;

What if you got a free burrito just for mentioning ‘Chipotle‘ in your facebook status?

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You’re currently reading “Facebook Selling Your Data.,” an entry on Justin Powell | Interaction Design and Digital Strategy's blog

Published:: 02.03.09 / 5pm

Category:: Advertising, Branding, Conversation, Digital, Discovery, Ideas, Innovation, Marketing, Social, Strategy, Technology

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Justin Powell provides interaction design and digital strategy services in Kansas City. He is currently pursuing a MA Interaction Design from the University of Kansas. Justin enjoys solving complex business problems with design thinking methods. A portfolio sample of his work can be found at www.justinpowelldesign.com.

Kent 02.08.09 / 2pm

I’ve been thinking about this lately, particularly because Twitter’s utility is declining for me because of the increasing volume of marketing noise.

Facebook could likely develop a decent revenue stream by allowing marketers to learn from their customer base. But I don’t think they should. Call me a heretic, but given our recent economic crisis, I think we as business people need to stop the culture of “more.” By that, I mean adopting a mindset of “responsible capitalism,” which means that we stop and ask ourselves: “Is that really beneficial to our society? Our culture? Our health?” That means we may give up revenue streams that are tempting for the sake of the greater good.

Recently, I read an article by that founder of Papa John’s. In Europe, he was asked if he was concenrned about the impact of the British government’s anti-obesity drive on pizza sales. His response:

“No. Pizza’s actually healthy for you if you don’t eat too much of it,” Schnatter replied, adding, “You can’t eat five or six slices but if you eat one or two slices it’s very nutritious.”

The presenter suggested shareholders might take issue with his suggestion. But I argue he has exactly the right perspective. Encouraging people to eat too much pizza is a bad thing. It could be done through clever marketing. But it shouldn’t. I’ll tell you one thing - my next Pizza is going to be from Pappa John’s.

So back to my Facebook opinion. Just because they could make money on allowing marketers and researchers to learn about their behavior doesn’t mean they should. I’m intrigued by your ideas around marketing-oriented social networks. That might work as long as one had control over whether you wanted to see that information or not. I just think the potential to turn off your customers is very, very high when it appears that everybody is constantly shilling something for some reward.

Facebook exists because of its ability to build community. Any revenue they make must result from that core purpose and not betray the reason they exist. Here’s an idea: What if they focus on creating content? HBO-quality content only available on Facebook (look at Hulu and networks’ online efforts). That seems to fit into their core purpose of community while providing an alternative revenue stream.

Stream of consciousness here, but your entry really made some neurons fire….

justin powell 02.09.09 / 11am

Thanks Kent!

I’m with you with in regard to becoming a culture of ‘less’ - that seismic shift is happening right now regardless. although there are a lot of people just itching to get back to where things ‘were’… even though we know that’s not a sustainable option.

I like the idea of creating additional value (content) for the user, as suppose to creating some kind of compromised value for everyone. i have read that facebook is ’struggling’ in the revenue category, so i think they’ll have to do something. you’re right in assuming that ‘customers’ would be turned off, especially if they knew their social wire was being tapped. so there’d definitely need to be an opt-in policy!

Your comments raised some great thoughts about social networks for the greater good, our culture, etc. it’s probably going to spur another post in regard to the economy, social tools, and financial education (via mint).

Cam G 05.25.09 / 1am

Like the last two, I am with you Kent on the culture of less.
Customers and prospects are bombarded these days, it is actually nice to be able to go to sites like facebook. It is like a refuge.

However, agreed it needs to make money. The great beauty of facebook is that it is real user content, whose only influence would seem to be the users peer group.

I dont know the answer, but I suggest that it may lie in the very strength of facebook - its ability to build a community. Facebook doesnt exist without its community.

Therefore why not ask the community? They may well be able to determine an answer!

Facebook may become one of the first democratised on-line communities, where the users have more influence than the share holders.

Facebook Selling Your Data.

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