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Facebook's Zuckerberg: 'We simply did a bad job' handling Beacon

This post was updated at 1 PM PT with comment from Overstock.com.

Plagued by allegations of everything from deceptiveness to invasion of privacy, Facebook CEO Mark Zuckerberg has publicly backed down on the social-networking site's controversial Beacon advertisements and announced new modifications.

In a post on the company blog on Wednesday morning, the 23-year-old executive apologized for the mess surrounding Beacon, which shares information about users' activity on third-party partner sites and posts it to their friends' "News Feeds."

"We've made a lot of mistakes building this feature, but we've made even more … Read more

Facebook CEO apologizes for Beacon (too little too late?)

Facebook CEO Mark Zuckerberg finally acknowledged that the company may have screwed up with Beacon in a blog post today.

It took us too long after people started contacting us to change the product so that users had to explicitly approve what they wanted to share. Instead of acting quickly, we took too long to decide on the right solution. I'm not proud of the way we've handled this situation and I know we can do better.

Call me crazy, but if the CEO of a Web 2.0 company worth all that money, changing the world, blah, … Read more

Facebook's Zuckerberg apologizes, allows users to turn off Beacon

Today on the Facebook Blog, Mark Zuckerberg apologizes for the mistakes Facebook made in rolling out Beacon, and announces that the company is "releasing a privacy control to turn off Beacon completely."

This is a clear victory for consumer backlash and protests. MoveOn.org spokesman Adam Green responds to today's development:

"Sites like Facebook are revolutionizing how we communicate with each other and organize around issues together in a 21st century democracy. The big question is: Will corporate advertisers get to write the rules of the Internet or will these new social networks protect our basic … Read more

Digg images going live later tonight, News Corp. buyout next? [PICS]

Digg's long-awaited images section will go live later tonight. Similar to the way Facebook's sharing tool works, users submitting stories to Digg will have the option to pick and choose from thumbnails that have been crawled from whatever URL was supplied. There's no need to upload anything, or hotlink to an image--it'll simply be made available. To help users sort through it, Digg has also reconfigured Digg's category system, letting users submit all three types of media (news, images, and video) into any category. This aims to get rid of the previous system of users figuring out their own ways to get through Digg's limited categorization methods, by inserting "[PIC]" or "[VIDEO]" into submitted titles.

To help make use of the new visual draw, Digg's also launching a new way to browse through images using a "mosaic" view. It looks a little bit like Johnathan Harris' 10x10 project by organizing upcoming and popular stories in a cloud of thumbnails (which you can see in the screenshot at the bottom of the post). The company is also attempting to curb duplicate submissions using image recognition from Toronto-based Idee Inc, which is already listing Digg on its featured clients page.

One of the more interesting tidbits from the launch of Digg images is the partnership with Photobucket. The photo service is supplying integration with member images, giving users a new submission button that will jump them straight to a tailored Digg images submission page, as well as giving Photobucket users a whole new channel of photos that have been submitted to Digg. If you've been keeping track of any of the Digg buyout rumors, you should know that Digg's recently gotten deep integration with the News Corp.-owned Wall Street Journal to let WSJ readers submit stories to Digg, while allowing Digg users to read the premium content free of charge. Photobucket also happens to be owned by News Corp. While News Corp. owns two of those pieces (WSJ and Photobucket), why not go for all three?

Related: Digg doesn't have a photo section yet, but these seven sites do.

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More bad news for Facebook

The bad news about Facebook's Beacon program, user tracking, and privacy concerns just keeps piling up. Now Mark Zuckerberg and Facebook are under fire from consumers, journalists, activist and advocacy groups, and even its own advertising partners.

Today's biggest revelation, reported by PC World, is that "Facebook has confirmed findings of a CA security researcher [Stefan Berteau] that the social-networking site's Beacon ad service is more intrusive and stealthy than previously acknowledged, an admission that contradicts statements made previously by Facebook executives and representatives," including email correspondence between Berteau and Facebook's privacy department, as well as statements made by Facebook vice president Chamath Palihapitiya to The New York Times.

Facebook confirmed Stefan Berteau's specific allegation that Beacon tracks the off-Facebook activties of members even when they are logged out of the social-networking site. … Read more

Facebook is evil (even when their staff don't know it)

The internet makes it incredibly hard to not to publicly contradict yourself. My favorite examples are always Microsoft and open source, but it seems that Facebook is the new poster child for executives who have no idea what's going on with their companies.

In an interview last week with the NY Times, a Facebook exec ensured us that Beacon wasn't sending information after you logged out.

"Absolutely not. One of the things we are still trying to do is dispel a lot of misinformation that is being propagated unnecessarily," Palihapitiya replied.

But wait...as it turns … Read more

What Facebook can learn from Google

The New York Times has some great advice for Facebook: be patient, just as Google has been.

There is something astoundingly tone deaf about how Facebook has handled its recent advertising initiatives. Mr. Zuckerberg is right: there are lots of people who would find it cool to tell the world what movies they just rented and even what color socks they just bought. But [Facebook has] got to know that others would find this intrusive....

So the challenge to Facebook is clear: If you want to be as ambitious as Google, you may need to be as patient as Google … Read more

Facebook grooming us for intrusive marketing?

Whether or not Facebook kills its much-derided Beacon program, the controversy surrounding intrusive marketing surveillance deserves to flourish.

You remember the old story about the frog placed in a pot of water that was slowly heated up, until it was cooked? When I read the about Facebook's reaction to the anti-Beacon protests, my first impression is that Facebook's concessions are essentially along the lines of, "OK, we turned up the heat a bit too much on this one, so we'll turn it back down a little bit--for now." Are marketers counting on the fact that we'll get used to the warm bath, then the hot tub, calibrating their fine-tuned ability to stop just short of the lobster pot?

CNN.com contributes a story, "Ad targeting improves as Web sites track consumer habits," which covers the Facebook issue among other case studies. Marketers are studying the sensitivity level of consumers to intrusive advertising and adjusting their programs accordingly. For example, CNN.com reports, "Most Web sites and marketers have been shunning the ultimate targeting--ads that greet you by name. Yahoo could easily do that using registration information, but 'I'm not sure people would like that or not,' said Richard Frankel, Yahoo's senior director of product marketing."

The CNN story continues:

"Users' comfort with data profiling has indeed shifted over the years. Google faced criticism when it introduced an e-mail service that paired ads with the words inside private messages. Millions of people now use Gmail with scarcely a blink.

Users will eventually embrace the latest tactics, too--and by then, they'll complain about even deeper levels of intimacy yet to be invented, said Tracy Ryan, professor of advertising research at Virginia Commonwealth University

'You want to have enough targeting that a consumer notices the message and pays attention, but you don't want it to be so obvious that they are thinking (there) is targeting,' she said. 'That would be scary.'"… Read more