Facebook has had one tough quarter: data privacy scandals, shrinking margins and a market capitalization that has been trimmed by more than $100 billion as the internet giant’s shares tumbled from a record $217 per share down to the $160 range. Facebook now needs to show investors and analysts that it can jump-start earnings growth to restore faith. There is one clear path for Facebook to release its embedded value and regain its mojo: artificial intelligence and predictive shipping.
The current Facebook business model is based upon renting user intelligence to advertisers.
Regardless of who is mining the data, Facebook eagerly monetizes advertising insights based upon your intimate details. Writer Cale Guthrie Weissman states that “Zuckerberg keeps insisting Facebook doesn’t sell our data. What it does is even worse. Renting aggregated data is even more powerful.”
As consumer tech radio personality Kim Komando stated, “If it sometimes seems like Facebook knows you personally, that’s because it does. It has algorithms that track what you like, watch and click on, and then it passes that information on to Facebook advertisers.”
Facebook began selling ads, morphed into big brother and is now the world’s largest wholesale renter of AI augmented data. But what if Facebook sold you things before you even knew you wanted to buy them? That may seem like a dystopian fiction, but it already is part of Facebook’s ambitions.