Facebook and Cambridge Analytical Screwed Up, But Not How You Think

Facebook: Open for Advertising, Open for Business

There’s a huge kerfuffle over the recent revelation that Cambridge Analytica, a political research and advertising firm, used data from millions of Facebook accounts in order to build behavioral profiles and then, using those profiling models, advertise to people and manipulate their voting behavior.

People are upset over this, but, it’s not for the reasons that most people are talking about, that is, it isn’t that either Facebook or Cambridge Analytica behaved unethically. They didn’t. They behaved exactly as they were supposed to. The mistake they made was that Facebook users were reminded of how it all works.

What do I mean?

Let’s back up a minute, and look at both Facebook’s business model and also how advertising works.

Facebook is a social networking site, where you can connect with lots of people. That’s not a business model—there is no mention of how the rent is paid (salaries, their giant electrical bill, money to buy new servers and replace old ones). The business model is actually a very old one, one that’s been around for decades: advertising. As any old-school American television scholar will tell you, “If the product is free, you are the product.” This has been true for broadcast television and radio for decades. But as television offerings and the idea of “radio” have complexified, the idea “over-the-air” broadcasting has been somewhat forgotten: many people get their local, i.e., broadcast, television via cable, satellite, or the internet. The local airwave component is not part of that picture even though it’s still there.

The advertising industry, for decades, has wanted perfect consumer profiles for each and every individual. This way they can advertise to you perfectly. “Advertise” is just a polite word for manipulate. Yes, manipulate. Not influence, not coerce, but manipulate. It’s behavioral propaganda. Credit card data and frequent shopper cards were a good start, but the internet, once it reached the right scale, was a bonanza of behavioral data. With big data capabilities, perfect advertising may finally be within reach.

Most advertising that we think about is consumer-based, trying to get you to buy a product. Yes, you, buy this. That’s the idea. It is that basic. And political advertising is exactly the same: behavioral acceptance of a product. But in this case, your behavior is voting, not buying, and the product is a politician, not a good or service (that could be argued but doesn’t matter). It’s the same: advertisements try to manipulate your behavior to the advertiser’s desired outcome.

There is one other important aspect to advertising: that you not think about the advertising. And that’s where the failure is for Facebook and Cambridge Analytica. When you think about the advertising and how it really works, you realize you are the product. If you realize your vote, which is supposed to be sacrosanct, can be manipulated, then it throws into question what you might want to think about democracy and free will. (If you do not live in a democracy, this explanation probably seems short-sighted.) Capitalism is triumphing over democracy, and it’s not supposed to be that way.

Except, it is. Facebook thrives on a user-based advertising model where you are the product. All of your data and access to you is sold to advertisers, or, if Facebook can keep your data, Facebook itself can make all the behavioral models and then sell access to you (the advertisers will still need to make the “right” advertisements, but Facebook will provide the “right” people). Advertising works by showing you what will manipulate you into the desired behavior, be it buying or voting—they’re the same, it’s just a selection on your part.

Facebook will continue to make its service available for free to users, and can do so because the users are the product. Again, this is not new. Facebook sells access to its users to advertisers with precision targeting because Facebook has so much data about your behaviors and preferences, and although there are other financial models this is the one Facebook is currently using. Advertisers try to manipulate your preferences and behaviors based on your past preferences and behaviors.

None of this is new. (Suddenly, my media studies degree is looking pretty hot!)

Where they screwed up was that users remembered that they, the users, were the product, and that they, the users, were the subject of manipulation in the political domain where an individual’s voting preference is supposed to be pristine, determined solely by the voter, beyond manipulation and not for sale. Except, that isn’t true. Just most of the time we don’t want to think about it.

Addendum 1: Google's business model is also advertising.
Addendum 2: Zuckerberg's first website.