Recently there has been a lot of attention focused on social networking websites such as Facebook and MySpace regarding their security and users' privacy.
The idea that information posted on these sites may be used for some commercial purpose appears to be the main cause for this concern. But before we condemn them completely, let's look at all of the facts surrounding the situation.
Facebook claims more than 400 million users worldwide. How many of those users have paid for the service Facebook offers? None.
How many of those users would pay $4.95 or $9.95 a month to use Facebook? Probably nowhere near 400 million. The reality is that social networking sites are free to the users — offered at no financial cost whatsoever.
Now let's look inside the business of websites such as Facebook and My Space. They employ hundreds of high-priced programmers and IT specialists, they own millions of dollars of expensive computer hardware and they purchase untold amounts of Internet bandwidth — all of which require cash.
Who's paying for this “free” service to the 400 million of us who post pictures of our cats and stories about our weekend trips?
The answer lies with their business model. Advertisers are paying for access to the profiles of potential customers. The likes and dislikes, ages, genders and even geographic locations of social network users allow businesses to target their advertising where it will most likely have the biggest impact. Why wouldn't Facebook sell this data?
Now that may seem like an invasion of privacy, but a private person wouldn't blurt out in a crowded room that they like tacos, or just ended a messy relationship or that they hate the USC football program.
A private person would keep that information private. Why then would a private person post that information on the Internet and expect it to remain a secret?
Advertisers are simply using technology to better locate potential customers. American corporations have used cruder, simpler methods such as surveys to do the same thing for years.
Why do you think breakfast cereal is advertised on Saturday morning cartoon shows and beer ads run during sports broadcasts?
That's targeted marketing and advertisers pay dearly to find out when to run their ads on television.
The simple answer is that websites such as Facebook are free for the users and are run for profit. You are not their customer, you are their inventory.
Advertisers are their customers and they buy profile information to target their Internet pitches just like they buy survey data to target TV spots.
Your preferences are valuable, but if you don't want Goodyear to advertise tires to you, then don't click “like” on auto racing.
