Has Facebook Misunderstood The True Value of It’s Information?

Facebook’s continual attempt to “open” up people’s information is, I think, I gross miscalculation on the meaning of a persons “social network.” It’s not really about privacy of the individual it’s about privacy of our network of friends and family.

I am on Facebook and I like it. I will not however, connect as a “friend” with someone I have never and likely never will, actually meet. I ignore these requests, for business I use LinkedIn or I may connect via my Twitter. To get to know you better first. The mayor of my city made a “friend request” and while I’m sure he’s a very nice guy, I just don’t know him. I’m not a friend. Maybe someday I will be. Then I’ll include him.

The point is, Facebook is about a persons “network”, or who they work with, family and well, actual friends with whom there is a social or emotional connection.  That connection may have started 25 years ago in high school or a year ago at a function and well, you just connected.

We already know that we can not possibly be friends with everyone. Nor do people want to be. This is where Facebook has entirely missed the point of social networks in the sense of “social networks” and in fact, I will submit, that by trying to expand, falsely, a persons “social network” beyond people they really want to connect with, they are significantly diluting the value of their data to marketers. Since there is no longer a “true” representation of a persons network. It ruins the “data set” and dilutes it.

Facebook adds significantly more value by looking at “network effects” of people and will be able to draw much better conclusions and provide much better resale information (in aggregate) to buyers and advertisers than opening things up too much.

Keeping privacy rights at the forefront is actually in Facebook’s better financial interest. The more they try to open things, the worse they actually make their offering.

Manging privacy better is in fact, in Facebooks broader financial interest in my opinion.

What do you think?

(Author: G. Crouch, CEO)