
by Ashley Good
In the digital age, personal data has become one of the most valuable commodities we. For example, companies like Facebook (now Meta) have built extensive business models around the collection and monetisation of user data. This report delves into how Facebook collects user information, the implications for privacy, and the broader impact on society.
Facebook employs various strategies to gather data from its users.
Every post, comment, and like contributes to a user’s digital footprint. According to Facebook’s own statements, the platform collects data from the content users share as well as their interactions with others. Moreover, Tracking Technologies are when Facebook utilises cookies, pixels, and APIs that track users not only on its platform but also across the web. A 2021 report by the Digital Advertising Alliance indicated that Facebook was one of the top trackers across the internet, collecting data on millions of websites. Furthermore, they use ‘Device Information’ which is when users access Facebook through mobile devices, the app gathers information such as device type, operating system, and location data. A 2020 study showed that Facebook could access location data even when users had disabled location services, raising significant privacy concerns.
Financial Incentives Behind Data Monetisation
Facebook’s revenue model heavily relies on targeted advertising, which generated approximately $114.9 billion in 2021 alone. According to a report from eMarketer, over 80% of Facebook’s revenue comes from ad sales, which are largely driven by the detailed user profiles built from extensive data collection. One way they can do this is by leveraging data analytics, Facebook enables advertisers to reach specific demographics based on interests, behaviours, and interactions. For instance, advertisers can target users who recently visited certain websites or engaged with types of content, which significantly increases ad effectiveness. Finally, Third-Party Data sharing allows Facebook to share user data with third-party developers and advertisers, although this practice has faced scrutiny.
Notable Controversies and Breaches
Facebook’s data practices have faced significant backlash and scrutiny. For example in 2018, it was revealed that Cambridge Analytica harvested the personal data of approximately 87 million users without their consent, using it for political advertising during the 2016 U.S. presidential election. This incident highlighted the extent of Facebook’s data-sharing practices and led to investigations by regulatory bodies. As a result of this, Facebook was fined $5 billion by the Federal Trade Commission (FTC) in 2019 for privacy violations. This fine was one of the largest ever imposed on a company for privacy-related offenses.
The Impact on Users and Society
The implications of Facebook’s data practices extend beyond individual privacy concerns, such as the erosion of trust between their users and the company. This is because the repeated data breaches and scandals have led to a significant erosion of trust in the platform. According to a 2022 Gallup poll, only 36% of Americans had a favourable view of Facebook, a drop from 50% in 2018. Furthermore, the use of targeted advertising based on user data has raised concerns about its impact on democracy and electoral processes. A report by the Knight Foundation suggested that personalised political ads could lead to misinformation and manipulation of voter behaviour. The constant monitoring of user behaviour can also contribute to mental health issues. A 2021 study published in the journal “Computers in Human Behaviour” found that users who perceived a lack of privacy on social media platforms reported higher levels of anxiety and depression.
Facebook’s data collection and monetization practices highlight a complex interplay between user privacy, corporate interests, and regulatory frameworks. As the platform continues to evolve, it faces the challenge of balancing profitability with ethical considerations surrounding user data. For users, the key lies in remaining vigilant about their online presence and understanding the implications of sharing personal information in a hyper-connected world. The conversation around data privacy is far from over, and as technology advances, so too will the challenges in protecting user rights.