Facebook needs to become more profitable if it wants to stay competitive, especially since its stocks are tanking right now. The main way the company wants to reach that goal is through advertising. While it could probably increase revenue by simply adding more advertisement on Facebook, that’s not really the way advertisement works these days.
It is all about knowing the people you advertise to, and that’s where the data mining company Datalogix comes into play. Facebook is now working with the company to create better data for marketers that want to advertise on the social networking site. So how does this work? First of all, it is an opt-out system, meaning that it applies to all users of the social networking site automatically. I can’t say for sure if it is only about users from the US or Facebook’s worldwide audience, considering that Datalogix’s main focus seems to be on the US.
Facebook will compare the email address that users registered their account with to Datalogix’s database of 70 million households. That not only gives Facebook and marketers additional data about Facebook users, but also new ways of monitoring advertising performance on the site since Datalogix gets part of its data from loyalty cards and similar programs.
So, if a Facebook users sees an ad on the site and buys the product later on, it is likely that marketers will know about it.
How can you prevent this data mining from happening? You need to opt-out of the program of course. The easiest way to do just that is to visit the privacy page on Datalogix.com, locate the choice paragraph there and click on the opt-out link in the first sentence. This is an automated process that sets a cookie on your system. Remember that clearing cookies will remove this one as well, so that you may need to revisit the page or block the cookie from being cleaned with the rest to avoid this from happening in first place.