"Following a recent uptick in data-driven ad offerings and a rapidly expanding ad exchange, Facebook is responding to fresh privacy concerns with new details about how it collects user data and how users can opt out of certain features. A series of mechanisms have been put in place to protect user privacy under the framework of Facebook Exchange (FBX), custom audience targeting and Facebook's now year-long partnership with data matching firm DataLogix," reports ClickZ.
"Almost four months have passed since Facebook launched its real-time ad exchange and it continues to grow the exchange with new partners, most recently Criteo and Rocket Fuel. However, with FBX enabling Facebook to connect its platform to third-party data for targeting ads, it was only a matter of time before privacy issues bubbled to the surface." Read more.
The exchange and privacy protection works this way. A viewer goes to a Facebook page. If the person has previously visited the site, then his/her computer will have a ID number. Facebook notifies the ad exchnage, which then tells Facebook which marketers want to show what advertisement. Facebook does not send personal information to the advertiser.
The question for marketers: How might privacy concerns kill the goose that lays the golden eggs? Two ways come to mind. First, surfers might opt for private browsing, which the major browsers now provide, thereby denying information to websites. Second, surfers might avoid sites such as Facebook. Should a vast majority of web surfers do either or a combination, then marketers will lose access to the information used for effective Internet marketing.
Do not copy the information that appears in brown. I intend it only as a means of sparking your thoughts for your short reports.
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