Advertising tactics on Facebook pose a threat to democratic ideals, yet regulatory bodies possess powerful measures to intervene.
In the rapidly evolving digital landscape, the role of social media platforms like Facebook in shaping our society and economy is becoming increasingly significant. This article, penned by Professor Leighton Andrews of Cardiff Business School, delves into the intricacies of Facebook's advertising model and its implications for democracy and the creative industries.
Facebook's advertising model is based on micro-targeting users by demographic segment, a practice that has both advantages for advertisers and potential disadvantages for democratic processes and values. The company earned an overwhelming $48 billion in profits from advertising in the first three financial quarters of 2019.
However, the micro-targeting ability of Facebook has been criticized for undermining the concept of a public sphere and for creating opportunities for discriminatory advertising. This issue is not limited to the United Kingdom; the Irish Data Protection Commissioner is currently investigating the practice to determine if it contradicts the EU's General Data Protection Regulation (GDPR).
The House of Commons DCMS Select Committee stated in 2019 that Facebook's business model is based on data transfer for value, a claim that contradicts Mark Zuckerberg's statement that the company never sells users' data. The UK has responded by implementing measures such as increased regulatory scrutiny on Facebook’s ad model, with the competition watchdog and information commissioner investigating transparency and data use.
The UK general election, taking place tomorrow, has seen political parties ramp up their spending on Facebook and Instagram. This trend raises concerns about the influence of social media on democratic processes, particularly in light of the potential for micro-targeting to skew public opinion.
The creative industries are another area where Facebook's practices have implications. The Creative Industries Sector Plan has made key sector-wide announcements, while the 2025 Spending Review has implications for the creative industries, as discussed by Creative PEC Bernard Hay and Emily Hopkins.
Notable figures in the creative economy include Marta Foresti, who has become the Chair of the Global Creative Economy Council, and Professor Nick Wilson, who discusses the Equity Gap in Britain's Creative Industries.
Moreover, the co-location of the Creative Industries with other Industrial Strategy Priority Sectors is a topic of interest, as discussed by Professor Dave O'Brien of the University of Manchester. Dr Josh Sieper also contributes to the conversation, discussing the potential benefits and challenges of this co-location.
The Global Creative Economy Council is having conversations between the Global North and South, aiming to unsettle and reorder the creative economy. This dialogue is crucial in ensuring that the creative industries remain inclusive and equitable, reflecting the diversity of the world we live in.
In conclusion, the role of Facebook in the creative industries and its impact on democracy is a complex and multifaceted issue. As we move forward, it is essential that we continue to scrutinise these platforms, ensuring that they serve the public interest while allowing businesses to thrive.
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