Advertisers hurt with Facebook but not breaking up
Facebook is being accused of overlooking a data breach by Cambridge Analytica, a British political consulting firm.
As Mark Zuckerberg continues to apologise to Facebook users, advertisers in India who are alarmed by the data breach say that they will continue to use the platform to target consumers.
Facebook is being accused of overlooking a data breach by Cambridge Analytica, a British political consulting firm. While the revelations are concerning, they are “not surprising,” said Chaitanya Rele, VP Marketing - Havmor Ice Cream.
One of the criticisms of social media platforms is that there is minimal governance on mediums, thus creating an ecosystem that can be exploited. “There is a liability on companies when they flout privacy laws, but the same fear is just not there on digital,” pointed out Meera Iyer, Head Marketing, big basket.
Advertisers and Facebook have both profited from profiling users and building consumer cohorts that can be targeted with advertising. The more granular the data, the better it is for advertisers. Speaking about the scandal, one digital media buyer who did not wish to be named joked that marketers might be curious to know how Cambridge Analytica pulled this off because it would benefit brands.
Advertisers that benefit from the platform need to be cognisant of their role as well some felt. Karan Kumar, Head of Brand & Marketing, FabIndia, pointed out that brands should introspect on their own requirements and ask what that they put on Facebook. He said, “Let brands not forget how much they have pushed Facebook to give away any even if little data when they wanted to plan their own campaigns.”
Facebook is no stranger to controversy., but maybe it has gone too far this time. Zuckerberg has faced harsh criticism for this data breach leading to Facebook’s value dropping by a whopping $50 million last week. Even as marketers who leverage the data Facebook has on its users, people like Iyer are concerned about “what money can get you.” Iyer said that as an advertiser on Facebook, “big basket has never gotten this kind of access to information but seems like if you have money, you can buy any data you want! That’s scary.”
Ad Spends to Stay
Rele said that he has personally reached out to his connections at Facebook to understand how the platform intends to ensure users feel secure. “While we’ve received some answers I can’t say that I’m fully satisfied,” he said. He further added that “Facebook and its team are taking this expose rather seriously and I hope to see significant changes to their privacy policies in the immediate future.” Iyer said that she will discuss the issue at the next meeting with the Facebook team.
All the marketers exchange4media spoke to said that they will not be cutting ad spends on the platform yet. Last year Facebook released a statement that they had computed video views incorrectly and so charged advertisers incorrectly. “That did not deter marketers from advertising on the platform. I don’t think this new controversy will either,” said Iyer.
Kumar said as a healthy debate goes on about privacy he is sure users will continue to grow on Facebook “making it impossible for brands to ignore this platform for brand campaigns.” Even if advertisers stay away from the platform in the short term, “advertisers will not stay away from Facebook for long,” he said.
“It would be far too impulsive to pull the plug on the platform altogether, but it is something that we will continue to monitor. If we don’t see dramatic changes very soon, we’ll have to consider different mechanisms to continue reaching customers. Our ethical code is not for sale,” said Rele.
Anshuman Goenka, General Manager-Marketing, Bacardi India, felt that it is premature to consider cutting spends on the platform. “We will take a call as the situation evolves,” he said.
Finally, spends on Facebook are also a function of the users on the platform. “As an advertiser the platform is only as strong as its user base, and so long as the users feel comfortable - we will see utility in the platform,” said Rele.
Facebook is being accused of overlooking a data breach by Cambridge Analytica, a British political consulting firm. While the revelations are concerning, they are “not surprising,” said Chaitanya Rele, VP Marketing - Havmor Ice Cream.
One of the criticisms of social media platforms is that there is minimal governance on mediums, thus creating an ecosystem that can be exploited. “There is a liability on companies when they flout privacy laws, but the same fear is just not there on digital,” pointed out Meera Iyer, Head Marketing, big basket.
Advertisers and Facebook have both profited from profiling users and building consumer cohorts that can be targeted with advertising. The more granular the data, the better it is for advertisers. Speaking about the scandal, one digital media buyer who did not wish to be named joked that marketers might be curious to know how Cambridge Analytica pulled this off because it would benefit brands.
Advertisers that benefit from the platform need to be cognisant of their role as well some felt. Karan Kumar, Head of Brand & Marketing, FabIndia, pointed out that brands should introspect on their own requirements and ask what that they put on Facebook. He said, “Let brands not forget how much they have pushed Facebook to give away any even if little data when they wanted to plan their own campaigns.”
Facebook is no stranger to controversy., but maybe it has gone too far this time. Zuckerberg has faced harsh criticism for this data breach leading to Facebook’s value dropping by a whopping $50 million last week. Even as marketers who leverage the data Facebook has on its users, people like Iyer are concerned about “what money can get you.” Iyer said that as an advertiser on Facebook, “big basket has never gotten this kind of access to information but seems like if you have money, you can buy any data you want! That’s scary.”
Ad Spends to Stay
Rele said that he has personally reached out to his connections at Facebook to understand how the platform intends to ensure users feel secure. “While we’ve received some answers I can’t say that I’m fully satisfied,” he said. He further added that “Facebook and its team are taking this expose rather seriously and I hope to see significant changes to their privacy policies in the immediate future.” Iyer said that she will discuss the issue at the next meeting with the Facebook team.
All the marketers exchange4media spoke to said that they will not be cutting ad spends on the platform yet. Last year Facebook released a statement that they had computed video views incorrectly and so charged advertisers incorrectly. “That did not deter marketers from advertising on the platform. I don’t think this new controversy will either,” said Iyer.
Kumar said as a healthy debate goes on about privacy he is sure users will continue to grow on Facebook “making it impossible for brands to ignore this platform for brand campaigns.” Even if advertisers stay away from the platform in the short term, “advertisers will not stay away from Facebook for long,” he said.
“It would be far too impulsive to pull the plug on the platform altogether, but it is something that we will continue to monitor. If we don’t see dramatic changes very soon, we’ll have to consider different mechanisms to continue reaching customers. Our ethical code is not for sale,” said Rele.
Anshuman Goenka, General Manager-Marketing, Bacardi India, felt that it is premature to consider cutting spends on the platform. “We will take a call as the situation evolves,” he said.
Finally, spends on Facebook are also a function of the users on the platform. “As an advertiser the platform is only as strong as its user base, and so long as the users feel comfortable - we will see utility in the platform,” said Rele.
Tags
Facebook
