This year has started off with a major controversy in the world of marketing and social media. We are of course talking about Mark Zuckerberg and his visit to Capitol Hill because of the breach of State security that was aided by a UK company called Cambridge Analytica.
This then influenced the market in certain ways but before we get to that we would like to state some facts first.
So this is what happened, Cambridge Analytica made Facebook applications that offered some sort of personality tests that could be accessed from the social media platform. This seems harmless enough, the catch was that one of the terms for using the test was to give all your personal information and the information about your friends to the company that made the app.
This made the company able to offer marketing advice and to let companies target specific individuals that have interest in what they are offering. We should mention that this wasn’t a recent invention and such consumer targeting has been used at least for four years. The problem arrived when new information about the Trump campaign came to light and it became obvious that Russian Foreign intelligence used this method of targeting and information trading to influence the United States Presidential elections.
This led to the continual public shaming of the CEO of Facebook Inc and to his so-called trial where he answered before a comity of 47 state officials in a historic moment for American and World history.
What Happened to the Company?
The trial was memorable and lasted for over 10 hours in total. Many important questions were put in front of the company. We won’t go into the details now. Many things where demanded that should improve our security on social media and our right to have private information. Things were promised and ideas were tossed around but none have been implemented yet.
Even though many users deleted their accounts and experts speculated that this will have a huge impact on the company’s profits, the fact is that nothing happened and we think that this might make Facebook even stronger as a social media platform in the future.