Advertisers threaten Facebook exodus about data breach
Advertisers threaten mass Facebook exodus about Cambridge Analytica data leakage
Facebook is facing the possibility of an advertiser exodus in the united kingdom about the data scandal that has enveloped the company, prompted widespread demands for new regulations, and knocked almost $50 billion from the market cap.
MODEL, a group of around 3,000 advertisers, including large brands such as Unilever and Procter & Gamble, is demanding answers from Facebook in the wake of the Cambridge Analytica data-mining scandal. The companies of the group works with would be able to opt out of the social network if their concerns are not addressed.
The trade group confirmed to Fox News that it will be a meeting with representatives of Facebook on Friday.
“We want to understand the scope of the examination Mark Zuckerberg announced yesterday. We want guarantees for our members to get to the bottom of the problems and the possible implications for the public and for advertisers,” Phil Smith, MODEL-director-general, told Fox News in a statement.
Christopher Wylie, a whistleblower who formerly worked with Cambridge Analytica, the firm that is said to have harvested private information of more than 50 million Facebook users, speaks at the Frontline Club in London, 20 March 2018.
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At the time that the group has been confirmed it is only aware of one company, Mozilla, that has been said is the interrupt of the advertising on Facebook.
However, as the MODEL receives no guarantee that the security of Facebook users’ data has been improved, there is a chance that other advertisers may be on the way to the exit.
“I think customers are at a point where enough is enough.”
– David Kershaw, head of M&C Saatchi
The organization of the declaration is also to be noted that the accusations to the address of the Facebook data were used for the “psychographic profiling and the secret, micro-targeted advertising, exploiting the voters’ fears and prejudices,” are “deeply about.”
The head of a large British advertising agency, told BBC Radio 4 that the trade group has started to exert real pressure on Facebook.
“I think customers are at a point where enough is enough,” David Kershaw, head of M&C Saatchi, said.
MODEL, is of the opinion that political advertising in the united kingdom, a lot more transparency than they currently do, and need to be brought under the auspices of the country by the Advertising Standards Authority, an independent watchdog agency that regulates the display of all advertisements in all media.
The possibility of other apps have used Facebook data in a similar manner, raises more questions, according to the british advertising trade group.
“MODEL asks Facebook for a full report of further potential problems, so that advertisers can take the appropriate measures,” the group said.
In the midst of the outrage over Facebook in the processing of the information allegedly harvested by Cambridge Analytica, and the prospect that its former employee, Christopher Wylie will testify before lawmakers, the social media giant has seen a considerable negative impact. Hashtags such as #DeleteFacebook have risen, causing some users to leave the ship and there are reports the chief security officer, Alex you will make, may resign.
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Zuckerberg finally broke his silence on Wednesday by posting a long statement that reads: “We have a responsibility for protecting your data, and if we can’t then we don’t deserve to serve you.”
“The good news is that the most important actions to prevent this from happening again today we have been taken years ago,” he went on. “But we also have made mistakes, there is more to do, and we need to step up and do it.”
Still, despite the protest of a part of the users is Facebook’s advertisers, which could force the company’s hand.
“It is much more likely to be hard money from advertisers rather than the consumer of hashtags on Twitter,” Kershaw told BBC Radio 4, with reference to the anti-Facebook hashtags that have become popular.
Regardless of what happens, the company is in a new area. In an interview in Wired on Wednesday, Zuckerberg said that the company would be required to submit to a number of new type of regulation.
“[T]oe Honest Ads Act. Most of the things there, from what I’ve seen, is good. We support it,” Zuckerberg said, noting that, although the specific invoice can not continue, Facebook will implement most of it anyway. “I think it’s ultimately good for our community and good for the internet if internet services to meet many of the same standards, and go even further than the TV and the traditional media have had to in the advertising—that is just logical.”
The Fair Advertising Act, introduced in October 2017 by Sens. Amy Klobuchar, D-Mn., Mark Warner, D-Va. and John McCain, R.-Az., would amend the 1971 Federal Election Campaign Act to make “reasonable effort” to ensure that the online ads are not, directly or indirectly, by foreign countries. The legislation would also, companies should disclose how the ads are targeted and how much the ads cost.
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The data scandal is the latest in a series of problems hinder the ubiquitous social network. In February, Special Counsel Robert Mueller, the indictment charged that the Russians infiltrated the network in support of Donald Trump’s candidacy; in January, the company tweaked the News Feed to more messages from friends, and less of publishers or brands, which mixed responses; that same month, the CFO said that the company is running out of places to show ads in the newsfeed.
Christopher Carbone is a reporter for FoxNews.com. Follow him on Twitter @christocarbone.