The Internet has developed to this point today, where there is still privacy.
The principle of Logard's material exchange in forensics is also used in the Internet world. Everyone who walks in the Internet world, no one wants to retire, and your name, gender contact, even the words that have been sent, are saved on the server.
Although all information is encrypted, the platform provider has the right to use the data to make a profit.When this information reaches a level of volume, the platform makes it easier to analyze user information for its use, with a loud and elegant name
If you ask the Internet companies use the information to have what use, the founder of Zuckerberg across the ocean with 2 billion monthly active users, the world's largest social networking platform can sit Facebook will tell you very happy: of course is used to sell advertising!
However, after being bombed for more than ten hours, Xiao Zai should be in the heart of the heart.
A social giant kidnapped by advertising
Last June, Facebook CPO Chris Cox announced to the media another milestone in the social media platform. After 13 years of establishment, Facebook's monthly active users exceeded 2 billion. At present, the total population of the world is around 7 billion 400 million, and China's population is 1 billion 400 million, which means that 1/3 of the population in China's global market is Facebook users.
The huge and growing number of users means more advertising revenue. In 2017, the total revenue of Facebook reached $40 billion 653 million, up 49% from the same period of the previous year. Behind the annual revenue, the Facebook advertising revenue has risen in a straight line over the past 8 years.
According to statistics from Statista statistics, from 2009 to 2017, the annual advertising revenue of Facebook increased from 764 million US dollars to 39 billion 942 million US dollars, which made Facebook a huge 50 million of market value.
The picture comes from Statista
Of course, Facebook can get the favor of advertisers, which is not just as simple as the number of users. As the world's largest social network platform, Facebook is more accurate than the search - based Google on the accuracy of advertising.
The advertising industry is one the true saying: I know half of their advertising is wasted, but I don't know which half. For advertisers, how to accurately locate the target audience and display the product information to each other is the key to the advertising. Because of the omni-directional control of users' behaviors and habits, Facebook can naturally match the audiences accurately when placing advertisements.
In the display of Facebook's advertising business, a user screening method entitled "the core audience" is breathtaking. Facebook can according to customer demand, screening targets put for age, sex, place of residence and other mobile phone models, all information, at the same time, but also through the vast network of information, matching a potential audience similar to the core audience, and provide services for advertisers.
It is with this advantage that Facebook can become the second largest advertiser next to Google. However, mastering more information of users also means that finding a balance between customer privacy and business interests has become a major problem in the execution process.
In the past few years, there has been a growing number of advertising revenues and public doubts about its privacy. In the end, Facebook moved to the abyss of privacy disputes in the whirlpool involving American elections.
Struggling with the scourge of Facebook
Facebook is now to seal waves, the reason is the irreconcilable contradiction between advertising profit model and user privacy, between the natural state to care for this and lose that, Facebook to find a balance in which is difficult.
In 2004, after the establishment of Facebook, it began its earliest profits through a business called "Flyers". It charges about 10--40 dollars a day, mainly for school students or small business groups. Thus, over the next few years, the number of Facebook users and advertising revenue began to grow.
In 2006, Facebook allowed anyone to register for accounts over 13 years old, which ushered in the explosion of its scale. The number of users exceeded 12 million, and advertising revenue amounted to 48 million dollars. During this period, Google, Microsoft, YAHOO and other giants extended the olive branch to Facebook in an attempt to buy them, all rejected by Zuckerberg. Obviously, in the eyes of Xiao Zai, his social advertising business is much larger than the imagination of the various giants.
The following year, Facebook launched the "Beacon" advertising platform, trying to make new breakthroughs in the advertising business. However, this business has made Facebook questioned and resisted for the first time. Zuckerberg was forced to come forward and make a public apology and shut down the service.
In short, the problems involved in the Beacon platform are also a violation of the privacy of the user. This system can track the user's online shopping information and make this information open to the user's friends. But the system that provides opportunities for advertising has not been asked for approval by the user. In 2008, 3 million 600 thousand users collectively prosecuted Facebook, selling users' shopping records and privacy information to advertisers using Beacon system. After being judged by North California court, Facebook had to pay 9 million 500 thousand dollars for the fine and compensation.
For Facebook, this is just the beginning of a struggle between user privacy and advertising revenue. In 2010, Facebook launched a program called "Open Graph" plan, the plan to turn between the various networks by Facebook account system opened up, in the enjoyment of other network services, users can easily by clicking on the "love", and use the Facebook account login website, and to communicate and share with friends.
The implementation of this plan makes the original Facebook in the acquisition of user information, which further expands the volume of information. As for how Facebook will use these information, Walton Business School experts have given a conjecture: Facebook's master plan may first accumulate information, and then generate considerable income streams through data re marketing.
Over the past few years, the number of users of Facebook has been increasing. The volume of data that it controls is also huge. This has brought incredible advertising revenue to Facebook, but user privacy has also been faced with great challenges. For Facebook, the user's data is the oil of the advertising revenue, and the higher and farther wants to go, must burn out the oil to create power. But there is no mistake in this process. A fire has ignited a fire in a place where Facebook was not concerned, just waiting for a prairie fire at the right time.
In 2013, a British Cambridge researcher named Aleksandr Kogan developed a character test application that attracted about 300 thousand users to download and install it. With the help of Facebook's account system and operation rules, Kogan collects the total user data of the 300 thousand users and their friends, and sells them to a data analysis firms named Cambridge Analytica.
If the data leakage is just as pure commercialism, like Facebook do not like today. The reason for the impact of this event is that Facebook is considered a tool for the Russian authorities to manipulate the general election in the United States. According to foreign media reports, the Russian and Trump teams, through the analysis of user data provided by Cambridge Analytica, carried out targeted advertising campaigns, and ultimately helped Trump win the election.
Political, commercial, citizen right of privacy, the factors of doping together, finally pushed the Facebook sealing waves, so that Zuckerberg had to deal with the question of Congress for up to ten hours. Although he lecturefield style Facebook to lay a booster, but Facebook for advertising revenue chasing, and ignore the user's privacy, is always hanging over Damour damocles. Ten years ago, ten years ago, and ten years later, the crisis has never changed.
In March 25th, Zuckerberg in the 9 British and American newspapers published a full page ad, apologize to the public about user privacy events. This is home to advertising as the main revenue of the enterprise, because advertising revenue lost user privacy, turned by apology in the form of advertising, it seems Chinese saying "the trouble should end it, too apply to foreign giants body.
To the Tencent, always learn not
At the hearing, Zuckerberg faced questions from lawmakers that Facebook was a technology company, not a media company.However, neither technology companies nor media platforms, nor Facebook, the world's largest social network, can deny that it is an advertising agency.
And the Tencent on the other side of the ocean is much richer in revenue compared with Facebook. Although WeChat with 1 billion users is the ace social networking platform of Tencent, Tencent's social advertising revenue has reached 25 billion 610 million yuan in 2017, but this figure is only 236 billion 660 million yuan in total revenue.
Facebook is undoubtedly envious of the Tencent's previous market capitalization of its rivals. In the business layout of Facebook, the world's largest social networking platform Facebook, the largest social sharing community in the world Instagram, and the largest SMS tool WhatsApp are all advertising revenue.
In addition to the three, sixth of the world's VR hardware brands Oculus, P2P mobile payment and game business, for many years has not been able to create enough dazzling achievements, so that Facebook's advertising revenue accounted for in the advertising business gradually saturated, stop growth, according to the old occupied almost all of its revenue share.
For this reason, Facebook will not become a Tencent, at least in the short term. At the hearing, Zuckerberg insisted on the advertising - based business model, to some extent out of his helplessness. He constantly told the public, to members, the future Facebook's measures on user privacy, leaving enough room for its survival advertising business. But for many years, Facebook has faced a crisis again and again. This brand of advertising has never been so good. The recent negative events of such a scale have proved that although he is a young genius, he has not been able to make the billboard.
But Zuckerberg lecturefield from the breadth of view, he is still firm and persistent. The reason is that he has only such a card in his hand. Even if you don't play well, keep on playing.