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Will Facebook Sell Out Its Users For Mobile Ad Money?

Even though Facebook continues to grow and dominate the social network market, the Internet giant has had a pretty rough first half of the year.  The Facebook stock offering was fumbled and the value of the company remains below where it was when the IPO occurred.  Even before Facebook went public, one of the nagging concerns to both the corporate executives and potential investors was how Facebook was monetizing on mobile platforms.  No company, Facebook included, has yet produced a reliable, consistent, and strong revenue stream from advertisements launched on smartphones and tablet computers.  However, Facebook may be prepared to change that, which is making Facebook users wary.

Facebook is preparing to launch a new mobile advertising campaign.  At the heart of the campaign is Facebook’s utilization of targeted advertisements, a type of advertisement that you cannot opt out of on Facebook when you surf on your computer.  Facebook targeted advertisements pair the pages you “like” with advertisers who attempt to sell you products in the sidebar of the site.  Facebook essentially customizes your advertisements based upon the Facebook pages at which you spend your time.  Facebook’s new mobile strategy is similar.

Facebook’s new mobile strategy would allow Facebook to access and utilize your browsing history on your mobile device utilizing Facebook Connect.  Have you ever encountered an app on Facebook that asks you to share information with it?  Have you ever been on a website and clicked the Facebook icon to share the content of that site on your Facebook page?  If so, you have used Facebook Connect.  Facebook Connect allows you to share information and have information shared with sites you connect with.  More often than not, if you deny the request to share information, you cannot reach the content you originally sought.  As a result, Facebook has a potentially vast repository of information about you and your mobile habits from which to target an advertising campaign to you.

Privacy advocates are already wary of Facebook’s plan because the social network has not announced any plan that allows customers to opt out of the new mobile targeted advertisement campaign.  Given that Facebook recently paid $10,000,000 to settle a privacy violation claim from only five users, one might think the company would be proactive about preventing future payouts (and offering an opt-out option immediately).  If Facebook’s plan is executed without a firm “opt out” ability, your mobile device may start displaying Facebook ads based on any Facebook-connected site you have ever gone to . . . including ones you may have just peeked at, decided it was not for you, and moved on.

The Internet, like a library, should be a place where one is free to discover and explore.  It is hard to think of a more personal device than one’s smartphone; indeed, with virtual payment systems it is more personal than a wallet to many young people.  Facebook creating targeting advertisements for your mobile device may feel like a more personal violation to many users and that is just bad business.

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