Facebook

There has been a lot of angst recently about how Facebook uses data from user profiles. But pretty much every organization that uses advertising does essentially what Facebook does, i.e. collecting information about customers and using it to target advertising messages to them.  So how do we make sense out of current events in social media?

Yes, Everybody does it

It is a standard postulate of advertising and marketing that we respond most favorably when the messages we receive are relevant to our interests. So ALL advertising companies do research to find out where their preferred customers (and prospects) hang out in the media, and they advertise in those locations.

They also do various kinds of research to understand us better.  For example, the bar code scanning in our favorite supermarket.  Everything goes into a database, and if we pay by credit card for check, they know a lot about us, personally.  Have you ever noticed that the coupons that print out while we're checking out are usually for something we already buy (or a competitor)?

Data collection about customers is not new, by any means.

• For centuries, newspapers and later radio and TV created interesting content in order to get people to also see advertisements.
• Starting in the 1970s there was an explosion of specialty magazines, allowing advertisers to reach audiences they knew was already interested in the specialty products the advertiser sells. 
• The hundreds of cable channels now provide this same pre-selection of specialty interests for advertisers.
• When businesses started using the WEB, the same thing happened -- specialty websites sprang up allowing advertisers to find the audience interested in their particular specialty products.

Modern mobile technology has certainly taken this way of doing business to new heights, like knowing your exact location so they can text you discount coupons when you are near a certain store. But it is more of the same and NOT something unprecedented.


How does Facebook Advertising work?

When you make a post on a Facebook business page, some people see the post "organically" because they already follow the page, or they see a friend comment or like the post.

But as page administrator, you also have the opportunity to pay money to extend the post so more people see it.  You can select friends of your current followers, or use a variety of other criteria, such as geographic area, age, and gender.  Facebook also watches what members post, like, and share, so you can select people based on a variety of interests which Facebook has identified, resulting from your history of posting.

In doing this, Facebook does NOT actually share your data.  The advertiser provides the criteria, and Facebook does the match internally in its system, and "serves" the post (advertisement) to the people who match the criteria.


So how did Cambridge Analytica get the data?

According to this article, the researcher, Dr. Kogan, made an agreement with Facebook which allowed collection of data for research purposes, but forbade transferring the data to third parties.

At face value, this is reasonable.  Academic researchers collect personal data all the time, but ethical research does not allow the identities of the participants to be known by anyone outside the study. Institutions have mechanisms in place to ensure this, called "Human Subjects Institutional Review Boards."  I have served on HSIRB at my school and have written proposals seeking approval for my research plans.

In keeping with this, Facebook prohibits collected data from being sold or transferred “to any ad network, data broker or other advertising or monetization-related service.” Dr. Kogan apparently collected the data, then violated the agreement with Facebook and transferred the data anyway.


What was the real failure here?

One can certainly argue that Facebook needs a stronger way of enforcing it's terms of service policy than simply trusting people to comply.

One can argue that websites and apps on which we post personal data should not be allowed to use that data, but this has been happening for 20 years or more on almost every commercial online platform you visit.  It is the REASON they exist, i.e. to make money (not to "serve the public.")

One can argue that users need more warnings about "the information you are about to post may be used for advertising, and delivered back to you in individually-targeted messages."  Most people will still ignore the messages, as they do the terms of service and other warnings.

One can argue that the people in Congress who are charged with regulating this stuff have no clue about what they are trying to regulate (a fact made clear by the questions from members of Congress to Mark Zuckerberg).

I wish I could boil this all down to a single failure with corresponding solution, but the social media environment is too complex.

The vast majority of these web and app systems are for-profit undertakings, meaning that they either need to charge fees, or depend on advertising.  The tried and true business model is to attract an audience with interesting content, and then expose them to advertising, ideally focused to the interests of the audience because what is advertised aligns with the content.

But most consumers conceptualize these content sources as "services" and do not understand that they, themselves, are an audience being sold to advertisers.  This makes them gullible and prone to impulse when they encounter memes, quizzes, and other means of data collection.

There is no simply way to change this paradigm, but public education is part of it.  Caveat Emptor (let the buyer beware) is critical.  Stop and think what information you are entering into the app or website.

If you don't want the entire world to know something, don't put it on the Internet (including ANY communication transmitted via technology).