COLUMN: Has social media passed its peak?

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

Social media share prices took a beating at the end of last week, with Facebook investors losing US$120 billion of share value and Twitter ones losing US$5 billion. Both of 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.

READ MORE: Facebook faces day of reckoning on Wall Street

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.

READ MORE: Bad week in social media gets worse; Twitter hammered on Wall Street

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

Working it out at Roots and Blues Festival

A pot-pourri of talented artists will jam to make workshop magic this weekend

Salmon Arm’s panhandling bylaw put on hold

City council allows time to pursue more compassionate solutions

No end in sight, smoke is here to stay

There is no anticipated change in weather for the Okanagan-Shuswap this week

B.C. declares state of emergency as more than 560 wildfires rage

This is only the fourth state of emergency ever issued during a fire season

Animal rights activists to protest Kelowna’s RibFest launch

Animal rights activists plan on sinking their teeth into an annual event they say is unethical and unhealthy.

‘Queen of Soul’ Aretha Franklin has died

Publicist Gwendolyn Quinn reports Franklin passed Thursday at 9:50 a.m. at her home in Detroit

Airbnb’s federal budget proposal tells Liberals, ‘we want to be regulated’

Submission says ‘we want to be regulated’ and asks the government to avoid forcing existing rules

Greens won’t run candidate in Burnaby South as ‘leader’s courtesy’ to Singh: May

Green Leader Elizabeth May says the decision is an extension of a ‘leader’s courtesy’

Missing B.C. hiker, dog found safe after 3-day search

Cranbrook hiker had been missing since Sunday, August 12, near Jumbo Pass.

UPDATED: B.C. RCMP dismantle Kinder Morgan protest camp

RCMP say they will enforce a court injunction today and remove Trans Mountain pipeline protesters who have been camped outside a Kinder Morgan terminal in Burnaby.

Italy says death toll will mount in Genoa bridge collapse

Authorities worried about the stability of remaining large sections of a partially collapsed bridge evacuated about 630 people from nearby apartments.

Former CIA Director: Trump worked with Russians and now he’s desperate

In an opinion piece in The New York Times, John Brennan cites press reports and Trump’s own goading of Russia during the campaign to find Democrat Hillary Clinton’s missing emails.

Church sex scandal: Abuse victims want a full reckoning

Since the crisis exploded in Boston in 2002, dioceses around the country have dealt with similar revelations of widespread sexual abuse.

Baloney Meter: is flow of asylum seekers at Canada-U.S. border a ‘crisis’?

“I think any time you have a government that allows 30,000 people over the course of a short period of time to come into Canada illegally, the impact that that has, that is a crisis,” said Conservative Leader Andrew Scheer.

Most Read