COLUMN: Has social media passed its peak?

Saul Klein at the University of Victoria writes about erosion of trust at Facebook and Twitter

By Saul Klein

Social media share prices took a beating recently with Facebook investors losing US$120 billion of share value and Twitter ones losing US$5 billion.

Both these companies lost 20 per cent of their value in a day, along with Snapchat, which lost five per cent.

Are investors waking up to what consumers already know, that social media has passed its peak?

Facebook and Twitter have grown rapidly on the promise of greater connectivity. Along with the benefits, however, the dark side of these new technologies has come to the surface and consumer trust is eroding fast.

The annual Gustavson Brand Trust Index shows how social media brands are perceived by consumers. Of 299 brands surveyed in Canada in 2018, Twitter ranked #296, Facebook ranked # 295, and Snapchat was #294. These are also among the brands that Canadians are least likely to recommend.

If we recognize that people don’t want to do business with brands they don’t trust, the over-inflated growth projections of social media brands was clearly an illusion.

Now that it is becoming clear that the emperor has no clothes, we should expect continuing turbulence in the social media space. Continuing large increases in subscriber growth are unlikely to materialize unless the companies do something about the way they are perceived.

What was once seen as the advent of a new era of free and open communications has turned into a nightmare of manipulation, loss of privacy and hate-speech.

Rather than new media creating strong alternatives to traditional channels, allowing a greater diversity of views with governments and other powerful stakeholders having less control over access to information, the opposite has happened. Authoritarian regimes are now more able to control content and manipulate readers and viewers.

Without legitimate gatekeepers, truth has evaporated and it is becoming increasingly difficult for consumers to distinguish fake news from any other kind.

What was once seen as a benign tool for people to stay in contact with one another, to build communities around common interests and share experiences, has become a vehicle for unscrupulous agents to use personal information to target and shape opinion. The loss of privacy has led to intervention in our democratic processes and sharp increases in identity theft and online scams.

What was once seen as a boon to free speech has created a platform for vitriol and online bullying.

Where we previously saw self-restraint on the expression of abhorrent opinions, reinforced by social norms, we now see impulsive and imprudent commentary and reaction.

Where we wanted greater diversity of opinion, we now have greater containment of views and are increasingly exposed only to those who share the same opinions as we do, reinforcing the fractionalization of our societies.

Is it any wonder that we have lost trust in social media?

In many cases, the social media brands themselves have aided and abetted the dark side. They have been slow to protect our private information, happy to sell our data to the highest bidder, and tried to avoid taking responsibility for online abuse and the spread of hate-speech.

As many other companies have come to appreciate, the route to long-term success is based on serving the needs of one’s consumers, not on manipulating and exploiting them for short-term results.

That requires building trusted relationships and behaving responsibly. Until and unless the social media brands appreciate this reality, their value is likely to continue to slide.

Saul Klein is the dean of the Gustavson School of Business at the University of Victoria

Just Posted

B.C. Legions in need of young members to continue aiding veterans into the future

Lest we forget what thousands of men and women did to fight for Canada’s freedoms – but without new membership, many Legion chapters face dwindling numbers

Kitimat commits itself to the global fight against polio

Mayor Phil Germuth signs a proclamation

$2 million landfill capping complete

The purpose is to minimize potential leaching of contaminants from the site.

Pipeline company urges rejection of many seeking intervener status in jurisdictional hearings

Those seeking to participate include District of Kitimat and Haisla Nation

North Coast figure skater to star in Dancing On Ice

Carlotta Edwards learned to skate in Prince Rupert, before becoming a star with millions of viewers

VIDEO: Amazon to split second HQ between New York, Virginia

Official decision expected later Tuesday to end competition between North American cities to win bid and its promise of 50,000 jobs

Around the BCHL: Surrey Eagles sliding and Cassidy Bowes flows

Around the BCHL is a look at what’s happening in the league and around the junior A world.

Pit bull cross, chihuahua owners must split costs for dogfight damage, judge rules

Eac side responsible for $577.43 towards injuries in Comox Valley incident

3 random words mark every spot on earth

Innovative mapping system assigns three word combinations to 57 trillion 3 metre squares

Most fatal overdose victims did not have recent police contact: Stats Canada

11 per cent of those who fatally overdosed in B.C. had four or more contacts with the police

Calgarians head to the polls to declare ‘yea’ or ‘nay’ on Winter Games

The question “are you for or are you against hosting the 2026 Olympic and Paralympic Winter Games?” was to be posed to them Tuesday in a plebiscite to help determine whether the city should move ahead with a bid.

Heir’s big birthday: 70 candles lined up for Prince Charles

Prince Charles turns 70 Wednesday, Nov. 14, 2018, still serving in the heir to the throne role he has filled since he was a young child.

Trudeau lays down challenge to companies in bid to boost trade with Asia

“Building the relationships, building the connections, building the facility and also changing mindsets — getting Canadian companies to see the opportunities we have around the world to partner and invest.”

CNN sues Trump, demanding return of Acosta to White House

CNN is asking for an immediate restraining order to return Acosta to the White House.

Most Read