What are the long-term consequences of Facebook's negative events related to the Cambridge Analytica data leak? What is at stake for both brands, and will users turn away from Facebook?
Without a doubt, the recent events starring Facebook make up one of the hottest weeks in the 14-year history of this social network. The scandal involving Cambridge Analytica shows no sign of dying down, and rival companies are using Mark Zuckerberg's misstep to try to defeat the current leader of the social networking world.
Facebook's chief executive, Mark Zuckerberg, decided to break his silence and spoke about the controversy surrounding the breach of user data security. He disclosed additional information, explaining how third parties gain access to the personal data of Facebook users.
"We will learn from this mistake to better secure our platform and make our community safer for everyone who will build within it."
Cambridge Analytica exploited earlier gaps in Facebook's data security and then used that information to influence the 2016 US presidential election, concerning Donald Trump's campaign.
As soon as the story hit the front pages, Cambridge Analytica was suspended from the social network, while Facebook's shares immediately began to fall, losing more than USD 50 billion in company value in a single day.
Facebook's founder was also summoned to answer questions about his data protection policy. Zuckerberg will likely answer those questions before US and UK authorities, which will probably happen in the near future.
The #DeleteFacebook trend
Public opinion also appears to have turned against the social network. The negative sentiment was expressed by WhatsApp co-founder Brian Acton, who sold his company to Facebook for USD 19 billion in 2014. Acton is not the only one who added his voice to the #DeleteFacebook campaign. The campaign is gaining momentum online.
The #DeleteFacebook campaign is gaining momentum
The scale of the negative sentiment was analysed in detail. Hitwise published data showing that searches for variations of the phrase "Delete Facebook" increased by 423% right after news of the scandal leaked.
During Advertising Week Europe, advertisers also added their voices during a debate with The Incorporated Society of British Advertisers. British advertisers describe the matter as "deeply troubling".
The media on the Facebook data leak
The media on the data leak
In subsequent interviews with leading media representatives conducted right after Zuckerberg's statement, Phil Smith, chief executive of ISBA, took a much firmer stance.
"What we hear at ISBA concerns advertisers: when we meet with Facebook's founder, we expect explanations on the issue that Mark Zuckerberg announced," he said in an interview with "The Times of London".
While industry trade organisations deal with the matter, digital marketers are now facing internal pressure to answer questions related to the data leak.
US advertisers consider their position
US advertisers react
The Drum contacted the US equivalent of ISBA to obtain a comment on the matter. Although the spokesperson declined to comment, it is understood that the matter is being discussed internally.
Meanwhile, Mozilla did not hesitate to decide to "pause advertising on Facebook".
In a blog describing this radical move, Denelle Dixon of Mozilla expressed her hope that the social network will improve its overall privacy settings.
"This news prompted us to look at Facebook's current default privacy settings, given that we support the platform with our advertising money," the post reads.
Greater attention to data on Facebook
Greater control over data
In a statement emailed to The Drum, influential analyst Brian Wieser of Pivotal Research expressed his opinion:
"I think this will result in greater control on many fronts related to advertisers."
According to the statement: "ISBA welcomes the forthcoming introduction of GDPR (data protection regulations), which will strengthen the law on data protection and privacy for all individuals in the European Union."
Facebook will certainly have to work harder than ever before to regain the trust of its users.
Summary
The Cambridge Analytica data leak dealt a heavy blow to Facebook's credibility, causing the company's value to fall by USD 50 billion in one day and searches for the phrase "Delete Facebook" to rise by 423%. Mark Zuckerberg announced improved security, but advertisers such as Mozilla and ISBA are pausing their activities and demanding explanations.
The scandal is also accelerating the implementation of GDPR as a data protection standard in the EU, which may permanently change the practices of social media platforms.
