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Opinion

By John Garvey

 

Is Facebook really Big Tobacco? The answer is ‘no’ — and there is no reasonable comparison, despite the compelling testimony of the Facebook whistleblower.

A two-sentence trip down memory lane on the subject of the tobacco industry will refresh our collective memories about an industry that was not only supported by government subsidies, but protected by the government. The tobacco industry was, in fact, founded on the back of slavery. So, despite the attention that the ‘Facebook is Big Tobacco’ comparison attracts, it is wildly hyperbolic and does a disservice to any alleged misdeeds of the social-media giant.

Now that we got that out of the way, what is Facebook, then? Really popular. As you know, your mother is on Facebook commenting on your posts that you need to lose weight, and your kids are on Instagram hiding their profiles from you. I hesitate to introduce the fact that they are probably over on TikTok, actually, because that will give you a headache.

Breaking news: the fight between Facebook and the whistleblower/Congress was over before it started. Where’s the evidence, you say? The perceived and actual value of Facebook was debated the day before the whistleblower testified in Washington, when someone at headquarters apparently tripped over and disconnected the network cord to Facebook, Instagram, and Whats App (OK, that’s fake news, but they each did go down on Oct. 4). The world noticed, consumers’ demand was tested and passed, and the stock priced declined.

However, just as the whistleblower started to whistle, Facebook’s stock began to rebound.

Are the charges serious? Yes, but they are societal as well — meaning it’s not just the algorithm that pushes nefarious content in front of us and our children. It is, in fact, us. We have choices, and we can easily unlike, complain, or log off if we are confronted by information from any source that we find offensive. Conveniently, your digital marketers will support your complaints because they — meaning me — do not want you to log off and wish to continue to put information in front of you that you will feel is relevant, compelling, and useful. That is how the algorithm is supposed to work, and there are coders tweaking it every day to make it better.

Here’s where I understand your anger, though. Mark Zuckerberg is absolutely not the right person to be leading or speaking for Facebook at this time. While he may still be popular with the Facebook employees, outside the building, he is barely discernable. This is one guy who fails to emote or show empathy.

I know, this presentation is somewhat simplistic. But if you are on Facebook, Instagram, Twitter, TikTok, Pinterest, or, indeed, LinkedIn (is Snapchat dead yet?), I sincerely hope you are getting some value out of the platforms you frequent. Companies like Facebook need to be more transparent and will be forced to in the future — but more likely by you, the public, rather than Congress. So, keep showing up, but also keep weighing in.

After all, we do not want to wait centuries for improvements, like we had to for government’s regulation of Big Tobacco.

 

John Garvey is president of Garvey Communication Associates Inc.

Features

The Consumer’s Dilemma

By John Garvey

“If you’re not paying for the product, then you are the product.”

That’s a quote from Daniel Hövermann in The Social Dilemma. If you have not seen the Netflix documentary, here are the important parts: a bunch of really rich people explain how creepy and addictive social media is, how most of them repeatedly and for different companies built it to be so, and how bad they feel about doing all that.

They explain, as their makeup artist prepares them for their actual interview, how social-media algorithms monitor our every move on the platforms. Nefariously, according to The Social Dilemma interviewees, this data is provided in anonymized form to advertisers so that they can get you to buy their products. In that way, you are the product — well, actually, your data is the product — that is offered by the platform (Facebook, Instagram, LinkedIn, Google) to the advertisers.

Actually, your attention is the product and has always been what marketers and platforms seek. Data can help get your attention, but it is a big mistake to think that data is going to drive conversion. Attention does.

Enter the feds and 46 attorneys general and one of the biggest anti-trust cases in U.S. history. They are suing Facebook essentially because, years ago, it bought Instagram (2012) and WhatsApp (2014) with FTC approval and then got really good at growing them. The charge is that they got so good at it, they made it bad for consumers and advertisers. Or, as the FTC put it, “suppressing, neutralizing, and deterring serious competitive threats.”

New York Attorney General Letitia James suggested on NPR’s Here & Now that the malfeasance goes even further. “Facebook’s monopoly means that users can’t pick up and go to another platform because they have no other meaningful alternatives.”

I’m guessing she is not on TikTok, although that platform has attracted its own turbulence from the Trump administration with the president’s determination that it is a national security risk.

It’s a safe bet that the courts will be dealing with all of this mess for some time.

John Garvey“Apple is acting to protect user privacy right now, and Facebook is freaking out. Apple’s upcoming version of iOS will require that apps ask user permission to track their activity across different apps or sites.”

So, where are the more near-term digital privacy protections and marketing changes coming from? This is a bit of a shocker because digital privacy protection is coming from two main sources these days: the European Union (EU) and Apple.

You know those annoying ‘accept cookies’ messages when you visit a new website? You can thank the EU and the General Data Protection Regulation obligations that went into full effect in May 2018. Because it is too hard to have one way of operating here and another there, generally EU regulations end up impacting if not protecting us as well.

There is regulation on the way. The EU’s Digital Service Act and Digital Markets Act are likely to create a new rulebook that will dramatically change the operations of online platforms as well as bolster the rights of consumers.

That’s all in the future. Apple is acting to protect user privacy right now, and Facebook is freaking out. Apple’s upcoming version of iOS will require that apps ask user permission to track their activity across different apps or sites. Even if the user gives that permission to track, iOS 14 — the software that runs the iPhone — will allow that user to turn it off at any time.

Think of it this way: Facebook will have to ask you, if you are an iPhone user, “hey, can I track a bunch of stuff you do on this phone and sell it to companies?” What would your answer be?

Apple’s iPhone controls more than 50% of the mobile-device market, so it’s no wonder why Facebook is freaking out. According to Inc., “Facebook is saying that iOS could result in a 50% drop in revenue for what is known as Audience Network. That’s Facebook’s advertising product that serves up ads within apps based on a user’s activity elsewhere. Audience Network is only a small part of the $70 billion in advertising revenue the company rakes in, but it isn’t hard to see why Facebook would be concerned.”

Recently, Facebook started running its own ads that highlight the harm users controlling access to their personal data will have on small business. The #SpeakUpForSmall campaign urges all users to take a stand for small businesses everywhere and add their voice in the comments section of their ad. At the time of this writing, there were three.

Facebook, whom Fast Company named “the worst brand of the year,” could use more likes.

 

John Garvey is founder of Garvey Communication Associates Inc., a digital marketing and PR agency with offices in Springfield and Los Angeles.

 

Technology

Baiting the Hook

By Jenna Finn

Vade Secure, a global leader in predictive e-mail defense, recently published the results of its Phishers’ Favorites report for the second quarter of 2019. According to the report, which ranks the 25 most impersonated brands in phishing attacks, Microsoft was by far the top target for the fifth straight quarter. There was also a significant uptick in Facebook phishing, as the social-media giant moved up to the third spot on the list as a result of a staggering 176% year-over-year growth in phishing URLs.

The report was developed by analyzing the number of unique phishing URLs detected by Vade Secure. Leveraging data from more than 600 million protected mailboxes worldwide, Vade’s machine-learning algorithms identify the brand being impersonated as part of its real-time analysis of the URL and page content.

“Cybercriminals are more sophisticated than ever.”

Microsoft has ranked number one on the Phishers’ Favorites list every quarter since the official rankings were first released early in 2018. In the most recent quarter, Vade’s AI engine detected 20,217 unique Microsoft phishing URLs, for an average of more than 222 per day. This represents a 15.5% year-over-year increase compared to the second quarter of 2018.

Microsoft phishing has become a potential goldmine thanks to the growth of Office 365, which boasts more than 180 million active monthly business users. Office 365 is increasingly the heart of companies, providing the essential services (e-mail, chat, document management, project management, etc.) that businesses depend on to run. Each set of Office 365 credentials provides a single entry point not just to the entire platform but the entire business, allowing cybercriminals to launch insider attacks targeting anyone in the organization in just one step.

Meanwhile, Facebook phishing has been on a tear throughout 2019 and advanced one spot up to number three in the most recent quarter thanks to a 175.8% increase in phishing URLs. One explanation for this rise in popularity could be the prevalence of social sign-on using Facebook accounts, a feature called Facebook Login. This is particularly attractive to cybercriminals because they’ll be able to see what other apps the user has authorized via social sign-on, and potentially compromise those accounts as well.

The rest of the most-impersonated brands on the Phishers’ Favorites report include PayPal (number 2), Netflix (4), Bank of America (5), Apple (6), CIBC (7), Amazon (8), DHL (9), and DocuSign (10). Amazon phishing URLs saw a massive spike in the second quarter of 2019, growing 182.6% over the first quarter and 411.5% year over year. This coincides with reports of a new Amazon phishing kit in May, as well as the lead up to Prime Day 2019.

In terms of the most impersonated industries, cloud companies took the top spot for the fifth straight quarter with 37.6%, followed by financial services (33.1%), social media (15.6%), e-commerce/logistics (7.7%), and internet/telecommunications (5.2%).

A large majority of phishing (80%) took place on weekdays, while Tuesdays and Wednesdays were the most popular days for cybercriminals to take their shot.

“Cybercriminals are more sophisticated than ever, and the ways they target corporate and consumer e-mail users continued to evolve in Q2,” said Adrien Gendre, chief solution architect at Vade Secure. “Microsoft Office 365 phishing is the gateway to massive amounts of corporate data, while gaining access to a consumer’s Facebook log-in information could compromise much of their personal, sensitive information. The fact that we saw such a significant volume in impersonations of these two brands, along with the coinciding new methods of attack, means that virtually all e-mail users and organizations need to be on heightened alert.”

Jenna Finn is an account manager with Vade Secure.

Features

Bridging the Digital Divide

Aneesh Raman says business owners think Facebook, with its 2.2 billion users worldwide, is a valuable tool — even if they don’t always know how best to use it.

According to a 2017 survey, said Raman, who manages Facebook’s global economic-impact programs, more than 60% of small businesses in Massachusetts said Facebook is essential to their business, and 76% said the social-media platform helps them find customers in other cities, states, and countries.

“That’s encouraging data, but as you talk to them, you see a need for more training,” Raman told BusinessWest. “That’s why we’re coming to 30 cities to provide training for small businesses across a range of subjects. No matter what their skill level is — whether businesses are coming online for the first time or are online already — we can help them grow their business.”

Earlier this year, Facebook announced that Springfield had been chosen as one of 30 markets where the company will host its Community Boost program, created to help small businesses, entrepreneurs, and job seekers grow their business and develop new digital skills. Facebook will be in Springfield on Sept. 10-11, presenting workshops on a host of topics yet to be determined.

“Our mission at Facebook is building strong communities, and we believe at the core of strong communities are thriving small businesses,” said Raman, who is also a former journalist who worked as an international correspondent for CNN, as well as a former presidential speechwriter. “Small businesses are the engine of local economies. For years, we have worked with them, trained them online and offline, and helped them grow their business and help them hire more employees.”

Since 2011, he noted, Facebook has invested more than $1 billion to support small businesses. Community Boost is simply a more visible and direct method of doing so, and will focus on small-business training and digital acumen in general, rather than simply promoting Facebook, Raman said.

“Small businesses are the engine of local economies. For years, we have worked with them, trained them online and offline, and helped them grow their business and help them hire more employees.”

During its visits to 30 cities — including Houston, St. Louis, Minneapolis, San Diego, Pittsburgh, and many other metro areas much larger than Springfield — Facebook representatives will take a three-pronged approach to economic development, working with local organizations to provide digital skills and training for people in need of work, advising entrepreneurs how to get started, and helping existing businesses and nonprofits get the most out of the internet.

A broad survey conducted by Morning Consult and co-sponsored by the U.S. Chamber of Commerce and Facebook suggests that small businesses’ use of social media is creating new opportunities. For instance, in Massachusetts, 62% of surveyed businesses said Facebook is essential for their business; 76% said Facebook allows them to find customers in other cities, states, and countries; and 69% said they believe an individual’s digital and social-media skills are important when hiring.

A lot of people use Facebook for business reasons, but never any kind of training how to do it. They’re on their own,” said Paul Robbins, president of Paul Robbins Associets in Wilbraham and a communications consultant for Community Boost in Springfield.

“People feel like they’ve got this tool, but they don’t know how to use it, especially small businesses,” he went on. “Here in Springfield, we’ve got a very diverse community with a lot of small businesses. Even not-for-profits can take advantage of this free seminar. Anybody can come. The idea is to help people leverage it as a business tool.”

Logging On

Facebook pledged this year to train 1 million individuals and small business owners across the U.S. in digital and social-media skills by 2020. To do that, it will expand its in-person training programs, create more local partnerships, and build more e-learning resources.

The company cites projections that a skilled-labor shortage in America could create 85.2 million unfilled jobs by 2030, and says it is committed to helping close that skills gap and provide more people and business owners with the educational resources they need to advance at work, find new jobs, or run their companies.

Details on Springfield’s Community Boost event, which is free and open to small business and nonprofits, aren’t set yet; Facebook plans to announce a place, times, and course list at www.facebook.com/business/m/community-boost as September gets closer.

“The goal of the program isn’t to come and leave, but to kick off conversations,” Raman said, noting that Facebook has been talking to businesses and economic-development leaders on a specific program that best meets identified needs for small-business and digital-skills training in the Pioneer Valley.

“Small businesses and workers know they need skills. But they don’t always have help getting those skills,” he went on. “Once we know what the professional needs are, we’ll announce the registration date and courses online.”

According to the Morning Consult research, small businesses’ use of digital tools translates into new jobs and opportunities for communities across the country. And small businesses are the key driver, creating an estimated four out of every five new jobs in the U.S.

The survey revealed that 80% of U.S. small and medium-sized businesses on Facebook say the platform helps them connect to people in their local community, while one in three businesses on Facebook say they built their business on the platform, and 42% say they’ve hired more people due to growth since joining Facebook.

Businesses run by African-Americans, Latinos, veterans, and those with a disability are twice as likely to say that their business was built on Facebook, and one and a half times more likely to say they’ve hired more people since joining the platform.

Raman said small businesses have expressed a desire to learn more about using Facebook and Instagram, the photo- and video-sharing service owned by Facebook. “But we’re teaching skills that apply to any digital platform out there.”

After all, Robbins noted, “not everyone is digitally savvy. A small business may not have the digital skills people assume everyone has. Facebook is trying to demystify it to people, so they’re not afraid of it.”

Getting Social

Increasingly, businesses are embracing 21-st century modes of building their customer base. The 2017 survey by Morning Consult found that the use of digital platforms by American small businesses is ubiquitous — in fact, 84% of small businesses in the U.S. use at least one major digital platform to provide information to customers, and three out of four small businesses use digital platforms for sales.

Yet, businesses face challenges when it comes to the internet, with 57% of small businesses saying lack of familiarity with available digital tools is a challenge.

“At Facebook, we see a big opportunity to make a difference in partnership with local organizations and local officials,” Raman told BusinessWest. “We really do think there’s a skills gap, and by closing that, we can help expand economic opportunity in Springfield and across the country.”

But it’s not just employers the Community Boost program aims to reach. For job seekers, the program will provide training to help improve their digital and social-media skills. According to the research, 62% percent of U.S. small businesses using Facebook said digital or social-media skills are an important factor in their hiring decisions — even more important than where a candidate went to school.

Community Boost will also offer entrepreneurs training programs on how to use technology to turn an idea into a business, as well as ways to create a free online presence using Facebook.

And, of course, business owners will learn how to expand their digital footprint and find new customers around the corner and around the globe. Training will also include education in digital literacy and online safety.

“We also want to teach nonprofits to be part of the programming and how Facebook can help them learn the digital skills they need to increase donations,” Raman said.

Facebook strives to evolve Community Boost based on what it’s learning in its earlier stops. For example, in St. Louis, the first stop on the tour, the company learned exactly how wide the gap is between the digital skills job seekers know they need and the skills they feel they have. In fact, according to a survey there, 93% of job and skills seekers say digital skills are important when looking for job, while only 12% rate themselves highly in this area.

Managers also see gaps in the skills they need to grow their businesses, the St. Louis survey showed. For example, the majority of managers in that city said creating a mobile-friendly interface was important to growing their business, but very few saw themselves as proficient.

Springfield — the only New England stop for Community Boost — may not have the population of the major metropolitan areas on the tour, but Raman says the needs are universal, and Facebook wants a diverse cross-section of cities represented.

“Springfield has a vibrant small-business community with a diverse population,” he noted. “We think we can make a real impact here.”


Joseph Bednar can be reached at [email protected]

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