As with any medium, there are potential disadvantages to utilizing certain platforms for marketing, including: the possibility for inconsistent experience (online vs. offline), damage of brand integrity or reputation, not a “fit” for a particular brand, improper use/underused of medium and of course privacy/security issues.
There is a potential for failure of security in both personal and business context. Businesses and individuals alike have the possibility of being over-exposed and under-protected when utilizing social media sites—stricter guidelines could help to regulate information sharing.
And for those of you (including myself) that are avid users of the social networking site, Facebook—our privacy may be threatened now, more than ever.
Facebook launched its “Open Graph Platform” that extends the social net’s web across third-party sites—Facebook now automatically shares user data with third-party sites, as well displaying user activities on those sites in the Facebook environment.
And this privacy threat is certainly not being taken lightly—by users or by Washington.
In fact, two days after the site announced its changes, Sen. Charles Schumer wrote a letter to the Federal Trade Commission in response to the launch of new features on Facebook. Schumer said new privacy policies limit the ability of users to control how much about themselves gets shared with sites that partner with Facebook. He said the FTC should set guidelines for how social networking sites use and share private information.” Vera-Phillips, 2010
And it’s not just Facebook—a federal regulation would extend to all online advertising. Online advertising is facing the very real possibility that it will be regulated in the form of privacy legislation that would require publishers, networks or marketers to receive specific consent to use consumer data for a variety of purposes on the web.
Some 20% of online ads are targeted based on online behavior, but that’s just the beginning. A new generation of companies, including Facebook and Twitter as well as Foursquare and GroupOn, are on the cusp of a new wave of location-based marketing. It’s not about where you are or where you’ve been on the web — it’s about who you are connected to and where you’ve shopped, dined out or just browsed shelves. Learmonth, 2010
Also from the article:
The company sits on one of the most valuable troves of user information; not just interests but human connections — thought to be the single most powerful determinant of consumer behavior. Facebook has, in many ways, been circumspect about monetizing that and generally puts the consumer experience first in everything it does. But for a company all about sharing information, it has shown remarkable clumsiness in communicating what it is doing to the public.
In fact, Facebook’s creator Mark Zuckerberg has been quoted saying that the site basically offers little to no privacy. Todd Dagres, partner at Spark Capital noted “The Facebook presumption is that privacy is not important — so if you really want privacy you have to opt-in and turn the dials to get the privacy you want. The issue becomes when people have different expectations of what privacy is.”
One former Schumer staffer told Ad Age the senator has a strong bias toward “opt-in” — that consumers should be asked before their data is used.
That said, the thought is that Mr. Schumer may determine that in the open web, there’s no expectation of privacy, and that “opt-in” presents too big a burden on the emerging online ad industry.

I’m more concerned about my rights then the “burden” it might cause to the online ad and social networking industries—as a service to its participants, privacy should be respected and rights upheld.
What do you think?
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