More firms may pull out if they lose confidence in the advertisement related metrics generated by Facebook. However, in the meantime, Facebook will probably need to spend more time trying to convince its customers on the advertisement value of Facabook. If the companies (especially the ones that rely on "Like" metric to collect strategic user profile data) feel that they are pouring money into a bottomless pit with no real gain, they are likely to pull out.
>>Facebook is likely to suffer more headaches in the coming weeks regarding the credibility of its advertising platform.>>
Does that mean more firms would pull off advertising at the platform? Meanwhile, there are a few prominent ones at the forum --- Netflix has been doing aggressive marketing and also I think Netflix needs Facebook more.
For individuals, a fake individual may be spotted by carefully reviewing that person's profile to look for inconsistencies and unrealistic data. However, for companies investing a fortune into advertisements via facebook, this is not possible as it requires the review of thousands if not millions of profiles. That is where the biggest problem really is.
If profiles can be automatically created on facebook, this is a big security loophole that needs to eb addressed and resolved by facebook soon. Otherwise, its reputation will be seriously damaged.
These fake users can also be programmed to click on "Like" buttons on Facebook that are considered as credible indicators of user interest by many companies.
@Crytoman, I agree with you. Many of the accounts created on FB are fake and are created by the companies just to create fake likes. But the big questions is how do you verify these accounts ? I don't think its easy to isolate fake FB accounts with the geniune FB accounts.
It was recently reported that companies have been wasting their money on getting people to "Like" them on Facebook. Independent security sources have confirmed some users on Facebook do not really exist and distribute spam and botnets with their virtual presence. These fake users can also be programmed to click on "Like" buttons on Facebook that are considered as credible indicators of user interest by many companies. These companies spend a fortune for boosting up the number of "Like"s and to attract the interest of people. Fake identity problem seriously undermines the advertisement value of Facebook.
Another problem for the companies is the fact that some users do not provide accurate information on themselves and such false statements mislead the companies whether their products are liked by the correct target groups.
Last year Facebook has announced that nearly 54 million of its users did not actually exist, which implies millions of the "Like" hits received by many companies could be fake. General Motors already withdrew its adverts from Facebook due to a loss of confidence in the credibility of its advertisement platform. Facebook is still trying hard to bring GM back.
Facebook is likely to suffer more headaches in the coming weeks regarding the credibility of its advertising platform.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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