Joe: Welcome to the Being Found Show. We are your guide to being found online by more buying customers. This is the best hour of radio for business. I am your host Cloud Wise Joe here with my co-host Chauncey Haworth.
We are going to make the Facebook mess a little bit less confusing. People are having concerns regarding Facebook and the privacy of its users. Should Facebook be regulated and what are the privacy concerns? Facebook has 87 million users which are approximately a quarter of the internet users in America.
All of those people have had their data and contacts and private information stolen. There is an argument going back and forth on whether or not Facebook can change the minds of its users. They regulate the information displayed to its users and what if all you see are the things you are interested in? What if conservatives aren’t being heard, or liberal information isn’t displayed on their platform? That is a lot of power for one guy who controls the media seen by almost 2 billion people.
What caught me off guard over the last couple of months listening to all this is that the people who are running our country frankly have no idea how Facebook works. They actually have no idea how a business can use it. I am going to bring this around to why it matters for businesses. Facebook does not sell your data because that is not their business model. Congress and businesses alike believe that Facebook is selling the data of their users.
The economic engine of being found on Facebook for businesses is for their consumers to find them. Most of the people we hear talking about this situation have no idea how to use this tool that takes your businesses information and places it right in front of the exact audience of consumers you are hoping for.
We are hearing some of the brightest people who are running America talk about Facebook like it is something different than what it is. It is a fantastic way for businesses to get their content in front of buying customers. That is how Facebook makes its money, not by selling users’ data. All of the people complaining that Facebook is selling their data most likely have a Facebook and have expected their info to be sold this entire time.
To get right to the point, Facebook does not make their money selling the data of its consumers; their revenue comes from advertising. You can go to Google and create an ad and say you want it displayed at this time in front of this audience.
Remeber that Facebook is paying attention to what you do and don’t like. It is paying attention to your interests and displaying content and ads that you want to see. Facebook uses segmented audiences and is allowing marketers and businesses to create ads or content and then display it to those specific groups. For instance, if you were selling bus tickets, you may want to advertise to a particular region or location, a certain age group, for specific occasions and Facebook will show your content to those set groups.
Now you can take segmented audiences one step further and target gender, age, generations, and even languages. Certain generations or age groups may have different and specific interests that businesses may want to target.
A single product can have a different value to 2 separate generations, and you will want to market that product separately and correctly to each audience. You can even market to individual topics like fashion, politics, hobbies, relationships and business industry. When marketing to those topics, you are reaching that audience and can become more specific to reach a demographic within that topic.
Chauncey: Let me throw out some real-world applications here. Let’s say I do eco carpet cleaning. Eco carpet cleaning is an expensive service so I’m going to want to market to people who have a higher income. It’s much more apt than women, as the head of household, are going to click the ad, so I will target women. People with newborn children and pets may be more interested in eco carpet cleaning, due to the concern for the safety of their pets and children. If the only way for them to make money is by catering to clientele who can spend more money, I will naturally want to market to them. I would be targeting higher tax brackets within my area and within specific more affluent areas around me so that I can expand and start trading my hours for more dollars.
Joe: Facebook does not sell your data. Facebook utilizes your information to put when you want to see right in front of you. They are also giving businesses the opportunity to market their products to the right audiences. People are having a hard time understanding that Facebook is a tool for businesses and a service to its consumers.
Thank you for listening to this segment of the Being Found Show, to hear the full show listen here: Being Found Show Episode #50 or subscribe to our podcast.