Facebook Going Public: What It Means for Users' Privacy

Facebook’s Geniuses Know it All. Or Do They?

I once wrote to Facebook's customer service department to demand to know why I had to choose from a list of cities to fill in my "Current City" field on my profile. In my message, I accused Facebook programmers of pretending to know it all; there are so many cities in the world -- how could they possibly list them all?

Being a persuasive writer, I have managed to get U.S. Senators and cabinet-level ministers and secretaries to reply to my correspondences before, but I guess I am more important to politicians as a constituent than I am as a user to Facebook, for Facebook never replied to my message.

Later on, I figured out why Facebook insists on only letting users choose from a list of cities to describe where they are from and where they currently live in, instead of letting users fill in the fields themselves – potential in making money from marketing. This New York Times op-ed explains it succinctly:

[U]nlike other big-ticket corporations, it doesn’t have an inventory of widgets or gadgets, cars or phones. Facebook’s inventory consists of personal data — yours and mine.

Facebook makes money by selling ad space to companies that want to reach us. Advertisers choose key words or details — like relationship status, location, activities, favorite books and employment — and then Facebook runs the ads for the targeted subset of its 845 million users. If you indicate that you like cupcakes, live in a certain neighborhood and have invited friends over, expect an ad from a nearby bakery to appear on your page. The magnitude of online information Facebook has available about each of us for targeted marketing is stunning.

If Facebook allowed users to fill in those fields themselves, it would be much more difficult for Facebook to provide demographic information to advertisers who are their main source of revenue. For example, if a user were to merely put “Aurora” in the “Current City” field, would s/he be referring to "Aurora, Illinois" or "Aurora, Colorado" or "Aurora, Victoria" or "Aurora, Ontario"? There are so many places in the world named Aurora and Facebook could not possibly sell ad space to potential advertisers based on such vague descriptions.

Facebook as a Marketing and Marketing Research Company

Five years ago, in my business strategy class at the Singapore Management University, my instructor asked the students what kind of business we thought Google was in. Google had then just become the world’s fastest growing search engine whose market share was overshadowing Yahoo!’s. We answered that it was in the internet communication and search industry. My instructor said that it was really in the marketing industry. He was right – since then, an entirely new industry has been created around Google; companies have been founded, careers have been made and books have been written and published solely on helping businesses and organizations rank higher on Google. Personally, I have written on how to use free social media tools to help one’s small/medium business rank higher on Google.

Facebook is not in the social media business. It is, like Google, in the marketing business. Now that Facebook is going public, it will certainly face pressures from its shareholders to increase profits. Where does Facebook’s profits come from? The same New York Times article I block-quoted earlier states that 85% of Facebook’s revenue comes from advertising – that’s to users like you and me. Facebook hires from among the smartest and the most creative; they will figure out a way to make more money from personal data and other means, such as being a sales website. I predict that in the medium-to-long run, Facebook will go into the marketing and advertising research industry, and be the leading authority on demographic data, overshadowing the likes of the Nielson Company and its famous Nielson Ratings.

So What?

What does this mean for everyday users of Facebook? Since Facebook’s most valuable asset is our personal data, it will entice you to share more and more of your life on the social networking website. In fact, it already has attempted to share more about your past by implementing the timeline feature and will slowly force every user to adopt that type of profile eventually.

So what, you say? It’s no big deal – you don’t mind letting people know about your life, past and present. Really? As Facebook grew and evolved over the years, it has engaged in questionable tactics to force users to share information with others, such as implementing a de facto "follow" feature or failing to inform users that they have to opt out of being automatically tagged in pictures by the facial recognition technology. It is to Facebook's benefit for you to share as much with as many people as possible, whereas it is not necessarily to your advantage to do so.

Facebook is growing at an extraordinary rate. Like any other company that grows at such a quick pace, it occasionally commits a mistake. So far, it has been great with online security, but mistakes like this one in April 2011 where email notifications were reset accidentally, this one in late 2010 where some applications improperly shared data with third parties, or this one in late 2010 where deleted pictures weren’t really deleted beg the question of how long it would be before users’ security is compromised.

Personal information that you have posted on Facebook may be used against you. Status updates and pictures that you have uploaded on Facebook may:

1. stop you from getting a place in graduate program,
2. cause you to lose a job opportunity,
3. cost you your job or reputation,
4. allow the government to invade your privacy,
5. allow the police to track you,  
6. lower your credit worthiness,
7. render your online banking account susceptible to hacking,
8. identify you in public areas (especially with Facebook’s facial recognition feature and technology),
9. inspire you to do really stupid things, and
10. cost you your divorce settlement.

Setting the highest privacy controls won’t really help. There is no harm doing that, however. Here are some more tips:

1. clean up your Facebook (and other social media) accounts
2. be careful about what you post
3. don’t reveal information on Facebook that you wouldn’t post on your front door
4. avoid uploading inappropriate photos
5. don’t talk about your job on Facebook unless you have something good to say
6. stay away from the details while you’re at that
7. even though it is tempting – and some may say it is the whole point of Facebook – don’t brag on Facebook.

And if you have found yourself on the wrong side of social media, it’s not the end of the world, especially if you can afford to pay. It may be expensive though.



Like this blog? Please like it on Facebook! You may like I Lost My Job Because of Social Media. Follow me on Twitter (@nicholas_cheong).

Still a Good Time for PR Professionals to Pitch Your Stories

In December 2010, in an article boldly titled “The Worst Time of the Year to Start a War,” I wrote that the end of the year is a great time for public relations professionals to pitch stories to journalists or to come up with a publicity stunt because it is a usually a slow news period.

Toward the end of 2011, Safeway wriggled itself out of a public relations nightmare; Penn State University mishandled a communication crisis; and the Metropolitan State College of Denver got itself a news story by pushing once more for its name change. Then the Occupy Wall Street Protestors started standing down and Kim Jong-il died.

Two days before the new year, Verizon, sensing an opportunity to get some free publicity, announced that it was going to impose a two-dollar fee on its customers for bill payments. After a public outcry and a statement from the Federal Communications Commission (FCC) saying that the regulatory agency would “look into” the fee, Verizon withdrew the plan – just one day later.

Marketing and public relations observers lauded the new era of social media and customer relations, citing how Verizon acted quickly and learned from the mistakes of Netflix and Bank of America for pushing through with unpopular plans on their customers.

Fax Machines: The Irony of Living in the Digital Age

Why faxes are still relevant and why organizations need to stop telling customers that physical copies of documents are needed

I recently moved from the retail industry to consumer banking.

Most people are aware that banking is a serious industry which requires participants of any financial transaction to leave a paper trail. That is why in spite of being in the digital age, retail banks still require customers to fill out paper slips when making deposits or withdrawals. The paper trail is especially important after 9/11, since governments all over the world have engaged the help of financial institutions (or in fact, forced them to with the passage of laws) to detect, report, hinder and obstruct money laundering or sending money for purposes of terrorism.

When I gave a presentation to an undergraduate communication class three years ago on the theory of the diffusion of innovations, I mentioned that the financial industry was the first to make use of the telegram for arbitrage and to profit from the first move from the latest news (such as for futures trading).

It therefore came as a surprise to me that in my new job, faxing documents to corporate headquarters (rather than scanning the originals and emailing digital copies) was standard operating procedure. What, you say? Banks offer – and in fact encourage – customers to sign up for internet banking nowadays. Why would they still use fax machines so frequently?

Public Relations and Leadership Lessons from Occupy Wall Street

How I would have organized the Occupy Wall Street (OWS) Movement

The Point of Protests

Protests have a few purposes:

1. Put pressure on the government or the organization that’s being protested against
2. Draw awareness to an issue
3. Expression of one’s beliefs
4. Abruptly violate the terms of a social contract
5. Overthrow existing authority

These goals are not necessarily mutually exclusive. However, the first three goals are often easily achieved with peaceful protests (e.g. protests and counter protests against gay marriage in California), whereas the latter two tend to be related to violence (e.g. Arab Spring of 2011).

Protests against governments and organizations in democracies are a sign of civic society where the freedom of assembly and speech are guaranteed by the government. In authoritarian societies, they are usually a sign of great discontent and the beginning of a usually violent overthrow of government.

The first two goals of a protest can be achieved through media coverage. The mainstream news media love good stories and protests are often considered stories of interest. Sometimes, organizations resort to extreme means in order to get themselves their 30 seconds of fame in the news. Violence, nakedness and getting celebrities to publicly support the protestors’ cause(s) are some examples of how protestors can increase their chances of mainstream news media coverage.

Protestors know that mainstream news media coverage is essential to achieving awareness of the issues that they believe in. That is why when Singapore told civil rights activists to go protest indoors during the International Monetary Fund in 2006, everyone (including then World Bank President Paul Wolfowitz) criticized the Singapore government for its authoritarian stance.

Hopefully, awareness leads to gaining support from the general populace for the issues that are being protested about.

How Many Ways Can You Jumble “Denver,” “State” and “University”?

How an institute of higher education created free publicity by prolonging the renaming process

This is a stroke of genius. Knowing that there are few newsworthy stories at this time of the year, the leaders of the Metropolitan State College of Denver (MSCD) have decided to create free publicity for the university by deliberately ruffling the feathers of the University of Denver and by prolonging their renaming process.

The process to change MSCD’s name is not a new one. The Denver Post ran a story on it on a slow news day in April.

Here are some facts which constrain and affect the renaming of MSCD:

1. The University of Colorado system already has a Denver campus (University of Colorado at Denver).
2. There already exists a University of Denver (and it is a good school, but more on that later).
3. There is also a Colorado State University in Fort Collins, 70 miles north of Denver.
4. MSCD’s leadership believes that non-Coloradans don’t know the location of the university because it’s more commonly known as Metro State College (“Which metro area?!”).
5. Apparently, people who are unfamiliar with MSCD tend to think that the “College” in MSCD’s name suggests that it may be a two-year college, which it is NOT.
6. It is important to retain the word “State” in the university’s name to reflect the affordability of tuition.

Hence the leaders of MSCD have decided to play with the words “Denver,” “State” and “University”.

Has the PR Team at Penn State Gone Home For Thanksgiving Already?

How a Public Relations Crisis Was Well Handled Initially… and Mishandled Afterward

It was a news story about a child molestation case involving an assistant football coach at a college. The news first broke out over the weekend. In most cases, it would have caused a major uproar within the local community, and would have been unlikely to make it to national news.

But this was no ordinary college. It is Penn State, which, according to this article at the New York Times, “had one of the most sterling images in college athletics, largely thanks to Mr. Paterno and his success in 46 seasons as head coach.”

The story, as it is told by the news media, is that Mr. Jerry Sandusky, the defensive assistant coach, had been molesting young boys for many years. The incidents happened at many places, including on university grounds. He was arrested on Saturday (November 5) and charged with 40 counts related to sexual abuse of boys.

Penn State responded quickly. The board of trustees held an “executive session” on Sunday night (November 6), and by Monday, the university issued a press release announcing steps to be taken, which are an internal independent investigation, the publication of the results of the investigation, reviewing police reporting protocols, as well as “educational programming around such topics.”

On Tuesday (November 7), the university issued another press release, where the Board of Trustees’ expressed sympathy for the victims and their families, as well as “sorrow and anger” at the allegations against Sandusky. This press release revealed more details about the internal independent investigation, including promises that the “Special Committee” will have all the resources it needs to conduct and complete its investigation. No restrictions would be placed on the activities of this committee, and the committee would find out who are accountable and recommend measures to ensure such an incident does not happen again.

So far, so good.

Always Have the Big Picture in Mind

In one of my many appointments in the army, one of them was as Gunnery Assistant. I would be involved in the planning stages of brigade-level exercises. I was trained to think at higher levels of command than most soldiers my rank could or should. We had to consider the big picture.

During one particular exercise, I overheard the Commanding Officer (CO) of an infantry battalion berate one of his Company Commanders, saying, “A Company Commander leads platoons; not sections. You were ordering section movements as if you were a Platoon Commander. Let the Platoon Commander lead his sections; you will lead the platoons.”

(For the uninformed, a section consists of seven to 10 men and is led by a sergeant, who is a non-commissioned officer; about four sections make up one platoon and is led by a junior commissioned officer usually the rank of lieutenant; four or so platoons of soldiers is led by a company commander led by a slightly more senior commissioned officer usually with the rank of captain; and a battalion is made up of four to six companies led by the CO usually with the rank of Major or Lieutenant-Colonel.)

The point that the CO was making to his Company Commander was to think of the bigger picture and not micromanage.

Safeway’s Public Relations Team Deserves a Bonus

A Good Example of How a Public Relations Team Should Respond During a Crisis

Last week, Marcin and Nicole Leszczynski were detained after Nicole forgot to pay for two sandwiches that she had eaten in the store during their groceries shopping in Honolulu. They bought about $50 worth of groceries; the sandwiches would have added another $5 to their bill.

When confronted by store managers, the Leszczynskis presumably explained what happened, and offered to pay for the sandwiches. But the store managers refused to let them do so! Instead, they decided to escalate the situation by treating this as a case of shoplifting and calling the police. (This reminds me of stupid bureaucrats who do not have the sense to use their discretion.) Worse, when the police arrived, they had Child Welfare Services take away the Leszczynskis’ two-year-old daughter.

It became a public relations nightmare for Safeway and the Honolulu store when the Leszczynskis’ lawyer suggested taking the story to the media. Fortunately for the Leszczynskis, this is the time of the year when newsworthy stories are rare (the death of Qaddaffi being an exception), and the news media lapped up the story.

Are Singaporeans Really Materialistic? (Part Two)

Why Do Singaporeans Place So Much Emphasis on Material Things?

(Part One can be found here.)

Most Singaporeans One Generation or Less Removed from Poverty

My father once told me that when he was a boy, his family was so poor that they lived in a dirt hut with no running water or electricity. He and his siblings were warned by their parents not to play too far away from their house. The reason for that warning is NOT because their parents were afraid that the children would fall into a river or a canal and drown, or that their parents were afraid of kidnappings.

The village that his family lived in consisted of houses built closely to one another, made out of scrap materials. Everyone used firewood or charcoal for cooking, and fire was a constant hazard. If a hut caught on fire, there was a real risk that the fire would spread to neighboring huts quickly. If the kids were playing too far away, they would not be around to help put out the fire or to save the few precious belongings they had.

That is still in the living memory of a large proportion of Singaporeans aged 50 and above. When one is a generation or less from such poverty, one is more likely to put material needs above others. This is articulately and elaborately explained in the theory of Maslow’s Hierarchy of Needs.

Are Singaporeans Really Materialistic? (Part One)

The title of the article was provocative: Singapore Girls Are Materialistic.

This did not surprise many of my male counterparts back home. In fact, going by the Facebook shares and comments on my newsfeed, it seemed like they felt vindicated.

Upon reading the article, and with my expertise as a social science scholar and a communication practitioner, however, I figured that the article probably articulated the study’s results in a provocative way for journalistic purposes, and that the study probably concluded no such thing as Singapore girls are materialistic.