Facebook Business Social Media Case Report

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User Privacy CONTENT • • • • • • • Facebook’s Mission Statement Background Proposal Recap Main Challenge Facebook-Cambridge Analytica Data Scandal Recommendation Analysis • • • • • Facebook Stats User Growth User Preferences Facebook’s Financial Standing Facebook’s Future • Alternative Solutions • Explanation of Recommendation • Q&A FACEBOOK’S MISSION STATEMENT “Facebook’s mission is to give people the power to build community and bring the world closer together. People use Facebook to stay connected with friends and family, to discover what’s going on in the world, and to share and express what matters to them.” BACKGROUND • • • • • • • • • • • • Founded in 2004 by Mark Zuckerberg at Harvard Expanded to other colleges and universities In 2006 anyone over the age of 13 was allowed to join the platform “Newsfeed”, “Likes”, and “Instant Messaging” were introduced between 2006 to 2009 Surpassed MySpace in 2009 as the largest social networking site Facebook settled its first federal lawsuit in US over privacy and user data in 2011 Facebook files for an initial public offering of stock in 2012 Purchased Instagram for $1 billion USD in 2012 Purchased Whatsapp for $19 billion USD in 2014 Acquired Virtual Reality company Oculus for $2.3 billion USD in 2014 2018 Cambridge Analytica Scandal Facebook has faced numerous accusations relating to privacy issues PROPOSAL RECAP Challenge #1 • Micro-targeting Challenge #2 • Spread of Misinformation Challenge #3 • Privacy Issues Challenge #4 • Possible End of Contracts with its Marketers MAIN CHALLENGE An Ethical and Moral Issue regarding the privacy of Facebook users and the safety of their personal data Cambridge Analytica data scandal was the culmination after similar previous controversies FACEBOOK-CAMBRIDGE ANALYTICA SCANDAL FACEBOOK-CAMBRIDGE ANALYTICA SCANDAL FACEBOOK-CAMBRIDGE ANALYTICA SCANDAL Australia sues FB for $529 Billion LOSS OF PUBLIC TRUST FACEBOOK’S FUTURE? RECOMMENDATION We believe that Facebook should be given the opportunity to handle and fix their challenges regarding user data and user privacy. FACEBOOK STATS (2019 to 2020) WORLDWIDE over 2.45 billion monthly active users MARKETING over 7 million corporate and political marketers ADVERTISING Facebook’s potential reach of advertising both for corporations and politicians is 2 billion users DAILY ACTIVE USERS 1.66 billion people log on every day. A 9% year on year increase POPULARITY Facebook accounts for over 45% of monthly social media visits. More than any other Social Media platform FAKE PROFILES There are over 120 million fake users on Facebook FACEBOOK USER GROWTH SOCIAL MEDIA USER PREFERENCE AS OF JANUARY 2020 (in millions) FACEBOOK’S FINANCES $70B $21B 2019 REVENUE 2019 Q4 REVENUE Represented a growth of $15B from 2018 Majority of which were generated through advertising $18.5B 2019 NET INCOME Almost a $16B dollar increase over 5 years FACEBOOK’S REVENUE AND NET INCOME FACEBOOK’S FUTURE FIRST ALTERNATIVE • Implementation of Federal Government Regulation in both the United States and Canada in the mould of the European Union’s General Data Protection Regulation (GDPR) REBUTTAL • Where does the regulation end? • Will it be politicized? • Could be harmful to innovation SECOND ALTERNATIVE • Fine and Penalize Facebook more than the $5B they were fined by the US Federal Trade Commission (FTC) for its role in the Cambridge Analytica Scandal • Some US Politicians and tech journalists said this was not enough REBUTTAL • This was the largest privacy related fine in FTC history • Facebook’s possibility to re-offend has been significantly reduced Facebook: Terms of Service THIRD ALTERNATIVE • Before signing the ‘Terms & Conditions’ webpage, FB can have an initial page highlighting what information will remain confidential and what will not. • Educating the users before they sign-up is important. This will improve transparency thereby increasing user trust in the platform. • Opt-Out policy REBUTTAL • FB shouldn’t be responsible for users not reading the contract before joining • They mention data sharing in fine print RECOMMENDATION - EXPLAINED What should we do about Facebook? Since 2018, Facebook has already implemented the following measures to try and combat privacy concerns and criticisms: • Mandatory restructuring by the FTC • Agreed to ongoing oversight by the FTC • introduced the “opt-out” option • Created AI tools to mitigate misinformation • Actively engaged with the public following the Cambridge scandal • Reconfigured their newsfeed algorithm THANK YOU FOR LISTENING Slide 1 Hello everyone, we’re the second group that will be presenting about Facebook today, and the overall topic of our presentation is based on user privacy and what to do about Facebook in regard to that challenge. We obviously touched on quite a few issues in the proposal. We mentioned that these issues can be tied in together towards one topic which is user privacy. How can Facebook tackle that challenge is the question we have to answer. Slide 2 Before we get started, we wanted to give a background on what we’ll be covering in the presentation. First we’ll take a look at Facebook’s updated mission statement and keep it in mind as the presentation goes along because the more we keep going, going back to this statement be important. Then a brief background on Facebook and important moments in their history, we’ll look at what we concluded their main challenge is. The main challenge, after our original analysis we did in the proposal is in regards to Cambridge Analytica and how it represents a culmination of issues facebook has faced. We will then follow up by our brief recommendation. In order to understand our recommendation, we will then analyze some Facebook’s statistics, their user growth and social media preferences since the cambridge scandal, their financial standing, then their possible future. We’ll then look at some alternatives and finally expand on our recommendation. Slide 3 (Read the entire mission statement) In 2018, shortly after the Cambridge Analytica Issue, Mark Zuckerberg explained that Facebook’s new statement reflected their responsibility within the world and he believes that Facebook should operate in a way not to just connect the world, but to bring society together and not divide it. Slide 4 As most of us already know, Facebook was founded by Zuckerberg when he was a college student at Harvard and eventually it grew to other universities across the US. But a significant change happened when the general public was allowed to join the platform in 2006 and the only constraint was that you had to be over 13 years old. Several of the things we’re accustomed to today on Facebook such as its “newsfeed”, the “like” button, and its messaging feature were introduced between 2006 to 2009, AND in that same time frame it surpassed myspace as the largest social media platform. Then, a few years after its founding, Facebook had to settle its first federal lawsuit in the US on privacy and user data. Moving on, the company had its IPO filing in 2012 and made significant purchases of other platforms like Instagram, Whatsapp, and Oculus over the next two years. Most importantly, Facebook has continued to face numerous issues dealing with user privacy issues. Slide 5 Just to go over our proposal, these were the four main issues we found with Facebook and it includes Micro-targeting, spread of misinformation, privacy issues, and end of contracts with marketers. However, we determined that they all share an underlying theme and that dealt with User Privacy. I know you may not have remmebered everything so Ill just give a quick rundown of the 4 issues we discussed last class and why it all comes down to user privacy Mircotargeting: Microtargeting allows companies and political tools to use contreversial tools like this in order to place their ads on the platform. Its used by business to reach targeted customers, and its also used by politcal parties during election campaigns. They are able to do this by data mining the database of facebook which has all the users info like, age, gender, political views, user activity etc, likes comments etc. SPread of misinformation: This is the “fake” news that can occur out of political ads, news articles, photos etc. It is shared on facebooks platform but other platforms like google, twitter have banned it. Cambridge Analytics scandal: Most of you will probabaly know about this scandal and we will go deeper into it on the slides. This regards access to private information. End of contracts with marketers: Facebook earns most of its revenues from third party marketers who advertise their product on users feeds. Facebook however was looking to make an opt-out option for users in case they did not want to reciieve these ads. This would mean less user engagement for markets and considering most of Facebooks revenues come from marketers, this could be a problem. We could obviously talka bout all 4 of these issues seperately and we did, and what we found out is that all these issues have one key theme which is user privacy. Slide 6 As a result, the main challenge that Facebook faces today is an Ethical and Moral Issue regarding User Privacy which extends to their personal data that they share on the platform. While we talked about microtargeting issues, and other earlier lawsuits that Facebook settled in our proposal, the reality is that the Cambridge Analytica data scandal was the tipping point and it encompassed all of these issues from User privacy, to microtargeting, to enabling misinformation to spread. HEre we will expand on the Cambridge Scandal Slide 7+8 psychographic In his 2015, “personality Facebook profile prediction” hadbased givenapp on a Cambridge the on the infoplatform. they professor, share, Thelike, Aleksandr appcomment microKogan, targeted on, etc. permission users andtocreated place a Aroundtheir access 270,000 profile users information signed up on the app and gave their consent for the professor to Kogan then accessing the used friends this of permission these users, to access then the more friends thanof 87those million friends profiles andbysosecretly on The example, million information these For targeted suppress data voters user African-American was voter profiles to were the shared political turnout. Trump targeted on with Facebook. campaigns campaign Cambridge voters with misinformation with Most to were use Analytica ads importantly, working this that information who contained with from harvested Cambridge Cambridge campaigns in misinformation order information also to intotarget the shared target USto voters, from 2016 voters. and try and or around election. and sold Some they this 230 of Facebook profiles asked that without found the data permission. outbe in 2015 deleted that Facebook Koganterminated was accessing it’s relationship and harvesting with data Kogan from inmillions 2015 and of The data took the brunt was not of the deleted blame and from Cambridge the public Analytica at-largeheld onto all the data gathered.Facebook SLIDE 9+10 This is just a visual representation of the distribution of users whose privacy was breached. As you can see, it was a worldwide issue but the biggest victims were in the US. The most recent case that came to light is that the Australian government is suing FB for 529 Billion dollars for violating the country’s privacy laws. Personal Information of more than 300,000 Australians has been compromised by giving access to this info to ‘This is your Digital Life’ app who later sold this info. to Cambridge Analytica. Here is a news article elaborating this further…………. SLIDE 11 Once the Cambridge scandal become public in 2018, public trust shattered for Facebook. In one survey there was a 66% drop in trust after the story broke and in another poll, 40% of users who were surveyed said they cannot trust Facebook with their private data and information. For reference, the closest were Twitter and Amazon at 8%. Facebook was clearly at a crossroad here after years of running into similar user privacy issues. SLIDE 12 It was inevitable that Facebook’s future be called into question. There was worldwide condemnation from politicians while Zuckerberg was forced to testify in the US, they were constantly on the news, and they were facing massive distrust from the public. It was speculated and predicted that Facebook could face the same fate as sites such as myspace (outdated) and hi5 (tried gaming site shutdown). The two most popular social networking sites in the mid 2000’s. Even though these sites did not have huge scandals like the Cambridge one, they were both replaced by new platforms, in this case Facebook. So it was reasonable to assume that Facebook itself could be replaced within the next ten years as preferences change and as users left the platform due to its privacy issues. SLIDE 13 Before moving on, our recommendation is that despite all of this, Facebook should be allowed to fix their challenges regarding user data and user privacy. And we will expand on this later on in the presentation. SLIDE 14 As stated previously, Facebook was predicted to head down a similar path to past social media leaders with a large exodus of users. However, the data does not show that. In fact, year on year growth for Facebook in 2019 to 2020 showed daily active users increased and they had almost 2.5 billion active monthly users. They were also still the most popular social media site to visit, and it remained popular with marketers and advertisers, which were their main sources of revenue. SLIDE 15 To expand, we can see that Facebook’s user base actually grew since the privacy scandal. And Facebook users account for almost half of internet users, with about 30% of the world population are facebook users. According to the company, the number of people who logged into its site at least once a month jumped 9% in 2018 to 2.32 billion people Despite the scandals, profits are up by almost 40%. Facebook isn't just surviving, it's thriving. It’s total profit for 2018 was $22 bn, up 39% from the previous year. It appears that Facebookn is resilient to the turbulence and is growing year by year. SLIDE 16 Furthermore, Facebook still remains the top social media preference for users as seen here. With Youtube being the closest competitor. However, it is important to note that Facebook owns whatsapp, messenger, and Instagram, and when combined, no other competitor comes close. SLIDE 17 Looking at their finances, Facebook’s revenue actually grew from 2018 by $15 billion dollars for a total of $70 billion dollars for the fiscal year of 2019. Most of this revenue comes from advertising with the last quarter of 2019 representing 30% of its revenue in the entire year of 2019. After expenses, Facebook had a net income of $18.5 billion, which increased by 16 billion dollars since 2014. SLIDE 18 When looking at Facebook’s revenue and net income we can more or less see an upward curve. While 2018 to 2019 does dip a little bit and levels out, the net income of $18.5 billion dollars puts Facebook in a strong financial position and their organizational health is also strong due to user growth and user preferences we just spoke about. This means that they are in an ideal position going forward and the chances that they end up like myspace and other sites are slim. SLIDE 19 We came to the determination that Facebook’s future includes their ownership of WhatsApp, Instagram, and oculus. They have already successfully integrated the use of Instagram to Facebook and WhatsApp continues to be one of the most popular apps available. In addition, Facebook also bought the Virtual Reality company, Oculus, known for the Oculus Rift headset. As recently as June 2019, Oculus outperformed expectations and sold $5 million dollars worth of content within 2 weeks. And Zuckerberg is aiming to make Oculus a market leader in the VR space by aiming to have 1 billion users of the product over the next couple of years. In addition, Facebook is also looking to enter into the cryptocurrency industry with it’s own currency, “Libra”. Even though it does not exist yet, if Facebook were to successfully integrate Libra into all of it’s platforms, they will create a new marketspace and change the way transactions work due to their large user base. This can help facebook, shift away from relying on ad’s for their profit, thus potentially solving their user privacy problems. But, there is still a possibility we see the emergence of a wicked problem here, as Libra may be exposed to hackers and other security issues. But overall, we believe that Facebook’s future is an optimistic one. Unlike other crypto projects, Facebook already has a humongous user-base and doesn’t need to start from scratch. They can leverage their 2.38 billion users to adopt Libra and push it into mainstream acceptance. By comparison, “only” 2.5 million people own Bitcoin. 2 billion people around the globe don’t have a bank account. Here are some more stats about the unbanked population: SE Asia alone has 438 million unbanked people, which is 73% of the entire population. According to a study done by McKinsey, reaching the unbanked population in this region could increase its economic contribution from $17 billion to $52 billion by 2030. SLIDE 20 We also decided to look at some proposed alternatives for Facebook to solve their user privacy issues. The first was federal government regulation both in the US and Canada. Politicians seemed to want to model regulations based on what the EU’s general data protection regulation did, which stated companies who violate user privacy will have to pay 20 million dollars or 4% of its yearly turnover. However, we see several issues with this. Particularly, where would the regulation end? Will it only concern user privacy? Or extend to more things on Facebook that the government decides it does not like? And will this process be politicized by different political parties when they are in power? Will Facebook be used as a crutch to blame election results on? This could also be harmful to innovation. If smaller companies were to unknowingly do something wrong, they could easily go bankrupt because they may not have financial resources like Facebook. SLIDE 21 Facebook was fined 5 billion dollars and directed to re-structure its approach to user privacy by the US Federal Trade Commission for its role in the Cambridge Scandal. However, prominent US politicians and tech journalists believed that the fine should have been much more. But we do not agree with this, since this was the largest privacy-related fine ever imposed by the FTC. The closest fine was only 275 million dollars compared to facebook’s 5 billion dollar fine. In addition, the FTC made facebook restructure the company’s approach to privacy, by establishing mechanisms to hold corporate leaders at Facebook accountable. And these mechanisms and restructuring is subject to strong ongoing oversight. As a result, we think Facebook’s chance to re-offend has been drastically lowered. SLIDE 22+23 What FB did, may not be legally in trouble but it’s definitely unethical. This is what the Terms of Service on FB say (Read out……). Now by show of hands, how many of you have actually read the entire Terms n Conditions? Now FB can try and get away from the court cases by defending themselves by saying that users signed their rights off for user profiling. But FB very well knows that more than half the population on FB has never read the Terms. Knowing this, they can take more rigorous steps like educating users about the Opt-out options. SLIDE 24 Now, just to expand on our recommendation, as mentioned, Facebook has restructured its corporate approach to privacy and are subject to meaningful and ongoing oversight by the FTC. In addition, Facebook has made the option to opt out of ad’s available to users. And made an “ad archive” available that facebook users could access. They have also deleted hundreds of thousands of fake profile or bots than can be used to spread misinformation by developing and deploying AI tools to help mitigate this. And they also changed their mission statement to focus on the “community” and began to engage with the public by running ads apologizing for the breach in trust, and also creating blogs to listen and speak with users. Facebook also changed the algorithm of their news feed by prioritizing news that a user’s family or friend reads. And they also created a team of fact checkers composed of various news outlets to label news that may be misleading or contain false information. And in conclusion to come back where we began the presentation, Facebook changed its mission statement to include the word “community” and Zuckerberg has since stated that Facebook’s next focus to be “developing the social infrastructure for community-for supporting, informing, and keeping the communities safe, for civic engagement and for inclusion for all.”
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Hello, there,I hope you are having a great day. I just finished work. I wanted to deliver it earlier but as you will be able to see this is a long essay which required a lot of attention. In total, the file contains 11 pages which means that around 5114 words were used in order to write the text. The essay is written with Times New Roman 12, single-spaced as requested. Based on that, we can state that all the format and the number of words were met as requested by you.I also made sure that all the information is taken from the PowerPoint. Actually, this is an analysis of the data provided by your professor in the PowerPoint presentation. As you will be able to see, no external sources were used (that's why we don't have a reference page since it is not needed when the paper is based only on a PowerPoint lecture).I used headlines to specify what I am discussing in each paragraph. I made sure that everything is clearly presented. I used numbers to underline different financial impacts (all these values are taken from the graphics provided in the PowerPoint and lecture notes).I also understand the importance of originality and due to that, the entire work was written by me. As you will be able to see, the paper is fully original as expected. Based on plagiarism scan result, this is an original paper which meets the requestIt was a pleasure working with you and I hope you enjoyed the essay I provided. I am looking forward to working with you again in the near future.

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File Name: Facebook Analysis

Format: APA (single spaced)
Type : Essay
Number of Words: 5114 words
Pages: 11 pages
Subject: Social Media Essay
References: No
In text citation: No

*The guideline given by your professor was correctly followed
*All the questions requested were answered and were included in the paper with
the suitable references.

Table of Content

• Introduction
• History of Facebook
• Micro Targeting
• Spread of misinformation
• Cambridge Analytica data scandal
• Possible end of contrats with marketers
• Impact of Cambridge scandal
• Facebook statistics (2018-2020)
• Facebook financies
• Facebook’s future
Alternatives Facebook can use to solve user privacy issue
• Recommendation
• Conclusion

Running head: FACEBOOK


Facebook Business Based on the Presentation
Student’s Name:
Institutional Affiliation:


Facebook Business Based on the Presentation

Social media is probably one of the best inventions of this century. It has enabled people
to connect more quickly and make business transactions using digital devices like mobile phones
and computers. Social media platforms have also been used as a source of entertainment for
billions of people around the world. However, the emergence of such a vast, heterogeneous, and
mass communication platforms has created room for the emergence of cybersecurity threats and
attacks. Facebook, the leading social media platform, has often been criticized for its role in the
massive spread of misinformation, macro-targeting, and breach of user privacy.

History of Facebook
Facebook is a social networking site that connects people globally using mobile phones
and computers. Facebook was founded in 2004 by mark Zuckerberg in his dorm room at Harvard
University. Zuckerberg managed to create this unique social media platform with the help of his
university friends, Eduardo Saverin, Dustin Moskovitz, Andrew McCollum, and Chris Hughes.
The initial intention for the development of this website was only to connect students of Harvard
Universities. However, the growing interest for this platform among students encouraged Mark
Zuckerberg to open a Facebook platform to other colleges and universities within the United
States and Canada, including Yale, Columbia, and Stanford Universities. The expansions to other
universities were also marked with positive reception driving the total active user to 1million in
three months.
The exponential growth of Facebook in its first year of operation provided an insight to
Mark Zuckerberg on how the website had the potential to capture the whole world. In September
2006, the website was launched publically, allowing anyone with a valid email address and aged
above 13 years to join the platform. Technological experts have argued that the move to make
the platform public could have marked the beginning of Facebook’s success as well as its
failures. Making Facebook a public platform attracted numerous visionary investors around the
globe, including Microsoft that bought 1.6% shares of the company in 2007. The investment
valued the company to approximately 15 billion dollars. Amidst the exponential growth of
Facebook, the organization decided to hire Google executive Sheryl Sandberg as COO on March
4, 2008. Sheryl brought leadership experience as well as political acumen from her time as chief
staff for the Treasury Department under the leadership of Bill Clinton.
The year 2009 marked the beginning of Facebook rebuild through the incorporation of
key features that would increase the interactivity of the platform. The key feature to be added
onto Facebook was the iconic "like" function on February 9, 2009, followed by "instant
messaging" and "news feed" a couple of months later. The incorporation of these key features
attracted millions of users around the globe, and Facebook swiftly surpassed MySpace in the
same year as the largest social networking site in the world. Amidst this environment of
exponential growth and achievement, Facebook was engineering a significant setback, the Arab
Spring. On December 18, 2010, a significant protest erupted in Tunisia and sparked the Arab
spring, which actively spread across neighboring countries for a couple of months. Facebook



was accused as a primary catalyst for the youth revelation in the Middle East. This isolated
event demonstrated how Facebook could be used as a tool for political organizing.
The following year on September 11, 2011, Zuckerberg introduced the Facebook
Timeline, a new version of a profile page. The new feature reorganized the users' posts and
placed them in chronological order. This meant that Facebook showed highlights from the user's
entire life posts rather than recent posts. Late that year in November, Facebook settled its first
federal lawsuit in the US over privacy and user data. The company was accused of violating
users' privacy by getting people to share more information than they agreed during their sign up
to the site. Besides, the company agreed to get approval from users before using their data for
any purposes. Also, the company agreed to contract independent auditors to review its privacy
practices for two years com...

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