We are able to create a virtual persona, an 'avatar', which discloses all sorts of information to our virtual friends. We can choose to list our likes and dislikes, our goals and aspirations, and even our day-to-day actions and thoughts.
One of the most interesting things about Facebook, and one of the most useful for advertisers is the "Like" feature. Facebook created it as a way for users to show their friends and family what products, services, and brands they enjoy. "Like" functions, therefore, in a way similar to word-of-mouth works in real life. We are heavily influenced by the preferences of the people we are close to, and "Like" provides advertisers with the ability to use this to their benefit.
Advertisers can make pages on Facebook specifically devoted to a brand or product, and when someone "Likes" it on Facebook, they will automatically receive a newsfeed of updates and announcements about it.
In this way, it functions similarly to the way email newsletters work. It provides a way to keep relations with existing customers, while also doing what email newsletters do not do: provide a way to influence someone's social circle.
So its no surprise that social networking sites like Facebook hold a gold-mine of information for advertisers. With the practice commonly known as 'Data-mining', the process of extracting patterns from large data sets, companies can make all sorts of inferences based on information provided by social-networking websites.
Social networking websites can sell this information to advertisers, but of course with this lies an issue of user privacy. As a facebook user myself, privacy is a huge concern.
Advertisers can use the information I post on my page as a way to target me and my friends, which makes me uncomfortable. It is interesting to note, that companies like Facebook and Google (Gmail) do not ask us for any money to use their services. Its all free!
But that is naive thinking. We do not pay them in currency, like 5 dollars or Paypal credits. Instead we pay them by giving them access to our personal information. But what is that information worth? When you give someone 5 dollars you know exactly how much value they will get out of it. But what about your information?
We do not know how much knowing intimite details about our romantic life, pictures, friends, and thoughts is worth, but the owners of Facebook and Google sure do, and they are not going to be the ones to tell us.
"Liking" on Facebook
One of the most interesting things about Facebook, and one of the most useful for advertisers is the "Like" feature. Facebook created it as a way for users to show their friends and family what products, services, and brands they enjoy. "Like" functions, therefore, in a way similar to word-of-mouth works in real life. We are heavily influenced by the preferences of the people we are close to, and "Like" provides advertisers with the ability to use this to their benefit.
Advertisers can make pages on Facebook specifically devoted to a brand or product, and when someone "Likes" it on Facebook, they will automatically receive a newsfeed of updates and announcements about it.
In this way, it functions similarly to the way email newsletters work. It provides a way to keep relations with existing customers, while also doing what email newsletters do not do: provide a way to influence someone's social circle.
So its no surprise that social networking sites like Facebook hold a gold-mine of information for advertisers. With the practice commonly known as 'Data-mining', the process of extracting patterns from large data sets, companies can make all sorts of inferences based on information provided by social-networking websites.
Social networking websites can sell this information to advertisers, but of course with this lies an issue of user privacy. As a facebook user myself, privacy is a huge concern.
The Information Gold-Mine
Advertisers can use the information I post on my page as a way to target me and my friends, which makes me uncomfortable. It is interesting to note, that companies like Facebook and Google (Gmail) do not ask us for any money to use their services. Its all free!
But that is naive thinking. We do not pay them in currency, like 5 dollars or Paypal credits. Instead we pay them by giving them access to our personal information. But what is that information worth? When you give someone 5 dollars you know exactly how much value they will get out of it. But what about your information?
We do not know how much knowing intimite details about our romantic life, pictures, friends, and thoughts is worth, but the owners of Facebook and Google sure do, and they are not going to be the ones to tell us.
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