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Say what you will about the strategy, that they felt the need to shout mea culpa so publicly is telling. I doubt they're anywhere near crisis territory yet, but a scandal like this will have a corrosive effect on numerous business vectors.

My hypothesis—pure speculation based on nothing—is that Facebook has seen a sudden dip or collapse in advertising revenue. Think about it, would you risk associating your brand with Facebook micro-targeting right now?



This seems a pretty accurate guess. Many of the major advertisers (Proctor & Gamble, Johnson & Johnson, Unilever) have already pulled back on spending with the platform as an ineffective use of advertising budget [0].

[0] https://www.wsj.com/articles/p-g-cuts-more-than-100-million-...




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