Social media privacy is influenced by two things in the world. One of them is offline friendships and the second thing is the existing Pay per Click channels. These two things affected how the social networks set themselves up and how they would do business in the future. The offline friendships gave the social networks the free model that they needed to generate the user base, and the Pay per Click systems taught the social networks how to monetize that model.
The original social networks were run by college kids that were only interested in staying in contact with each other. They knew each other well and knew each other's friends. They knew if a person liked the other person then their network would probably be a good base of people to know as well. There would be familiarity and those people in their network may end up being good friends too if they met. This meant that the social networks allowed everyone to view everyone else's friends because that gave them the best chance to grow their database of friends and have more relationships.
However, this does not work in the real world. These sites became popular and started to be used for networking purposes. This meant people would add other people into their networks that they did not necessarily know well, but they wanted to have contact with in the future. They also had business contacts in their profiles that other business people should not see (because they were a secret provider of X and if every competitor knew about how to get X, they would put that business out of business). This means that the social networks are not well made for business purposes.
The existing Pay Per click channels added the structure for monetization. The social networking systems and the search engines have two things in common. They offer a free service and they offer an advertising model based on that service. The free service may be the most useful part of the system. It definitely drives the Pay per Click side of the business because the people who use the free part of the system are the people who the businesses want to reach on the systems. Social media is no different; they have a wide base of active people on their system that the business owner wants to reach. Therefore, the social networks copied the monetization methods of the search engines.
However, the search engines never could get as much information as the social media systems. The social media systems have the advantage that they were built for personal relationships. Therefore, people on the social networks are accustomed to releasing the information to the social network. This is not true on the search engines, because the paradigm is different. The people on a search engine are looking for a solution, on the social networks they are looking to be entertained and to socialize with friends. This dynamic alone makes it difficult for the search engines to get as much information as the social media systems can and do get from their users.
These two things influenced how social media would be used in the future and how they monetized their system. However, the friendship model was the most important piece of influence because it influenced how the default settings worked on the social networking systems. The setting is usually set to let everyone see the profile no matter who they are (friend, family, or complete stranger). Therefore, this is what influenced social media privacy the most.
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