COLUMN: Has social media passed its peak?

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

Workers had a busy time today repairing a broken main water line. (District of Houston photo)
Water service being restored

Main line on 13th had broken

Flags at the District of Houston administrative building were lowered last week following the news that the remains of as many as 215 children were found buried on the grounds of the former Kamloops Indian Residential School. The flags were raised back up yesterday. (Houston Today photo)
Flags lowered in memory

Flags at the District of Houston administrative building were lowered last week… Continue reading

Bruce Tang- Unsplash photo
World Elder Abuse Awareness Day

“Older adults in our communities continue to find themselves in vulnerable situations… Continue reading

People watch a car burn during a riot following game 7 of the NHL Stanley Cup final in downtown Vancouver, B.C., in this June 15, 2011 photo. THE CANADIAN PRESS/Geoff Howe
10 years ago: Where were you during the 2011 Vancouver Stanley Cup Riots?

Smashed-in storefronts, looting, garbage can fires and overturned cars some of the damage remembered today

(Black Press Media file)
Dirty money: Canadian currency the most germ-filled in the world, survey suggests

Canadian plastic currency was found to contain 209 bacterial cultures

(pixabay file shot)
B.C. ombudsperson labels youth confinement in jail ‘unsafe,’ calls for changes

Review states a maximum of 22 hours for youth, aged 12 from to 17, to be placed in solitary

Eleonore Alamillo-Laberge, 6, reads a book in Ottawa on Monday, June 12, 2017. THE CANADIAN PRESS/Sean Kilpatrick
Parents will need to fight ‘COVID learning slump’ over summer: B.C. literacy experts

Parents who play an active role in educating their children this summer can reverse the slump by nearly 80%, says Janet Mort

The border crossing on Highway 11 in Abbotsford heading south (file)
Western premiers call for clarity, timelines on international travel, reopening rules

Trudeau has called Thursday meeting, premiers say they expect to leave that meeting with a plan

The B.C. government’s vaccine booking website is busy processing second-dose appointments, with more than 76 per cent of adults having received a first dose. THE CANADIAN PRESS/Jonathan Hayward
B.C.’s COVID-19 infections, hospitalizations stable for Tuesday

108 new confirmed cases, 139 in hospital, 39 in intensive care

A worker, at left, tends to a customer at a cosmetics shop amid the COVID-19 pandemic Thursday, May 20, 2021, in Los Angeles. (AP Photo/Marcio Jose Sanchez)
Half of cosmetics sold in Canada, U.S. contain toxic chemicals: study

Researchers tested more than 230 commonly used cosmetics and found that 56% of foundations and eye products, 48% of lip products and 47% of mascaras contained high levels of fluorine

White Rock’s Marine Drive has been converted to one-way traffic to allow more patio space for waterfront restaurants. (Peace Arch News)
Province promotes permanent pub patios in B.C. post-pandemic plan

More than 2,000 temporary expansions from COVID-19 rules

Lake City Secondary School Williams Lake campus students Ethan Reid, from left, Brenden Higgins, Ty Oviatt, Kaleb Alphonse, Nathan Kendrick and Landon Brink with RCMP officers Const. Nicoll and Const. Stancec. (Photo submitted)
RCMP thank 6 teens for helping prevent forest fire in Williams Lake

The students came across fire in a wooded area and used the water they had to try and extinguish the flames

Most Read