Facebook, the darling du jour of social networking, recently rolled out a new ad system with the clever and daring title, Facebook Social Ads. Don’t let the mundane title deceive you, however, because this ad platform is anything but business as usual for consumers and advertisers.
Two weeks ago, Facebook founder Mark Zuckerberg announced, “Facebook Social Ads represents a completely new way of advertising online,” adding that “nothing influences a person more than the recommendation of a trusted friend.” So what is so completely new and revolutionary about Facebook Social Ads?
Peering under the hood of this beast, we see that there are actually four new elements: Facebook Beacon, Facebook Pages, Facebook Insights, and Facebook Polls. (The previously released, much-heralded Facebook Platform has made waves since its introduction in April by allowing third-party developers to create applications (read: widgets) that integrate deeply with Facebook.)
Facebook Pages allows companies to create and maintain a page that serves as a “brand home base” for companies like Coca Cola and Verizon. Nothing new here. Myspace has been doing this for years. Facebook Insights and Facebook Polls are both tools provided for advertisers to research and mine the very granular, very valuable information in the Facebook social graph for authentic data about Facebook consumers, in real time, so as to make informed decisions about how to advertise to their audience. Nothing new here either. This is Google Analytics, Facebook-style.
Clearly, the most unorthodox and controversial piece of this glistening new platform is Facebook Beacon, which launched with the participation of 44 big-name ecommerce websites, including the likes of eBay, Blockbuster, NYTimes.com, Sony Pictures, Overstock.com and Yelp. Facebook Beacon allows users to “share information” from these and other participating websites for distribution in their Facebook friend network via the Facebook News Feed feature. This information includes actions like product purchases, video views, reviewing businesses or recipes, signing up for a service, or adding items to a wish list.
Facebook states that it provides advanced privacy controls so that users can decide whether to distribute specific actions from participating sites with their friends, but many are already skeptical of this ostensible privacy protection, and I’ll attempt to explain why.
Let’s say you purchase a movie from a Facebook Beacon-enabled website like Blockbuster. It will ask you in a pop-up if you’d like to inform Facebook friends that you bought a movie. There is an opt-out feature proffered (no opt-in feature, an immediate privacy concern and marketing worst practice). If you choose not to respond after 15 seconds, the pop-up goes away, sending a default “yes” answer to Facebook.
First, this default assumption of Facebook’s is presumptuous at best and malicious at worst, because it assumes that no answer at all is a yes answer, which—last time I checked—is giving someone’s answer for them. This default assumption is not the kind of thing to inspire confidence in users who, until recently, reveled inside their gated “dot edu” network of collegiate exclusivity.
Second, there is no universal opt-out button provided that allows Facebook users to say, “I don’t want any of this at all, ever.” As a Facebook user, you will need to opt out of every single website that employs Facebook Beacon that you visit, even if that means doing so dozens of times. Is something starting to smell a little funny?
My third concern may be the most controversial. When a browser loads a page or file from a Beacon-enabled site, standard information is sent back to the Facebook web server. By way of example, when a Facebook user loads a Blockbuster page, s/he is also loading a Facebook page, because there are three lines of Facebook javascript code added on. What does this all mean? Well, any time you load a third-party, Beacon-enabled page, Facebook knows exactly what you are looking at, including your clickstream and click path data, precisely correlated to your Facebook identity, whether or not you want to share your actions with friends in the News Feed. Does this sound a little Big Brother to you?
I guess the big question to ask a Facebook user is this: do you want your friend network to know what color socks you bought at Overstock.com, or which article you just read on NYTimes.com? It’s a rhetorical question, but I’m interested to hear people’s opinions about this.
Ultimately, social networks are used for exchanging social information and staying in touch with your friends, family and long-lost roommates, not for buying and selling things and interacting with enterprises. If this Facebook group is any indication of the rising tide of contempt against this platform, Facebook better think a little harder about how it wants to marry its beloved “social graph” to the whims of the almighty dollar, or risk a social network’s worst nightmare: irrelevancy.