Facebook has spent half a year in the headlines, both specialized and general, for the Cambridge Analytic (CA) scandal. The collection of data without permission from 87 million users and its subsequent exploitation left Facebook touched, eventually losing 150 billion dollars in July. However, the shock wave of the Facebook Case has not only affected Zuckerberg's company, but has also impacted all social networks or, more specifically, in the trust of its users.
According to a survey of 1,933 American consumers conducted by Hub Entertainment Research echoed in Statista, users who do not trust much or do not trust social networks at all (37%) is higher than users who do (27%). Simply put, users are losing their trust in social media because of the Cambridge Analytics scandal, and that's a problem. It highlights the contrast with other services, such as banks. 53% of users think banks are trustworthy, while only 13% think they are not.
Despite these data, from Statista they point out that 55% of respondents continue to use Facebook in the same way than before the CA case. Only 23% started posting less frequently. 20% changed their privacy settings, and only 8% deleted their account after the scandal. Interestingly, many of the users who closed their Facebook account continued to use Instagram, which is the same in a different format.
Trust is vital in the business of social media. Trust is needed to be a user, use the services and generate data, and that data is needed to sell advertising and make money. Without trust there are no users, without users there is no data and without data there is no money. Facebook, luckily or unfortunately, has the bull by the horns. Despite the fact that there are fewer and fewer young users on Facebook (the main objective of online advertising), the company has Instagram and WhatsApp, two services used massively by young people around the world.