Lessons From the Facebook Fiasco
But here, let’s dig into this from a data player’s point of view.
PII – Handle With Care
Facebook is sitting on an amazing amount of personal data, as the users voluntarily share them. Just the profile page alone is a goldmine. Added to that, Facebook has data regarding what the users clicked, liked, shared, reviewed and bought. We are talking about all three major elements of data in target marketing — demographic, behavioral and attitudinal data (refer to “Big Data Must Get Smaller”) all in one place, with an amazing depth in each area. In the business of analytics, that is like having some kind of superpower.
In the early days of Facebook, I voluntarily shared the details of personal information, just to see how good the targeting would be. For the record, to this date, I’m not totally blown away by its targeting accuracy.
Sure, I put down my hobby as guitar playing, and Facebook would show me more guitar stuff. Anyone should be able to do that with such explicit data. But when I go to my Facebook wall, it still feels like I’m looking at a billboard, not a series of targeted messages. Especially the sponsored ads on the right side of the screen. Facebook has been showing me some SUVs (I’m not an SUV guy) and men’s apparel commercials (sure, I’m a man) for days. Meh. That looks like Facebook is just selling regular banner ads, targeted with some rudimentary selection logic using basic data.
Even during the last election cycle, with all of those hyper-political memes and reactions to them floating around, I’ve seen some “totally off the mark” political ads on my wall. What a shame, with all of that rich data in its hands.
So this Cambridge Analytica comes along, and promises the kinds of things that Facebook is supposed to be able to do with all its data for a bunch of politicians. And some bit the bait and paid a good amount of money for the vendor’s services.
Stephen H. Yu is a world-class database marketer. He has a proven track record in comprehensive strategic planning and tactical execution, effectively bridging the gap between the marketing and technology world with a balanced view obtained from more than 30 years of experience in best practices of database marketing. Currently, Yu is president and chief consultant at Willow Data Strategy. Previously, he was the head of analytics and insights at eClerx, and VP, Data Strategy & Analytics at Infogroup. Prior to that, Yu was the founding CTO of I-Behavior Inc., which pioneered the use of SKU-level behavioral data. “As a long-time data player with plenty of battle experiences, I would like to share my thoughts and knowledge that I obtained from being a bridge person between the marketing world and the technology world. In the end, data and analytics are just tools for decision-makers; let’s think about what we should be (or shouldn’t be) doing with them first. And the tools must be wielded properly to meet the goals, so let me share some useful tricks in database design, data refinement process and analytics.” Reach him at email@example.com.