February 6, 2018
Facebook Says Business Stays Strong Amid News Feed Changes
Facebook Inc. may be making major changes aimed at fixing its impact on society. But its business is as safe as ever.
That’s the message from executives after an adjustment to the news feed algorithm — the company’s biggest moneymaker — prompted investor concerns that user attention could drop off, curbing demand for advertising. Yes, the time spent on Facebook in the quarter declined by 5 percent, but it was by Facebook’s design, executives said, in order to promote a higher quality experience. Yes, there was a dip in North American user numbers for the first time ever, but only because Facebook is already so dominant in the region.
The company reported another record quarter of revenue, boosted by mobile advertising, and said they don’t see the North American user decline as an ongoing trend. Executives also said Facebook advertisers have responded positively to the changes so far and predicted an increase in the number of ad impressions this year across the platform.
Facebook’s year was marred by challenges that led Chief Executive Officer Mark Zuckerberg to rethink the company’s main product, the news feed, to focus on “meaningful” social interaction. He said on Wednesday that changes in the fourth quarter cut the number of viral videos in people’s feeds and reduced time spent on the service by roughly 50 million hours a day.
“The most important driver of our business has never been time spent by itself, it’s the quality of the conversations and connections,” Zuckerberg said.
Facebook reported 1.4 billion daily active users in the fourth quarter, slightly missing a 1.41 billion average estimate from three analysts surveyed by Bloomberg. That amounted to the slowest user growth on record. DAUs in the U.S. and Canada declined from 185 million in the third quarter to 184 million in the period, the company also reported.
The shares rose 1.3 percent to $189 in late trading, after closing in New York at $186.89.
Slowing Growth
Users are joining the platform at the slowest rate on record
Source: Bloomberg
Fourth-quarter revenue rose to $12.97 billion, beating the $12.6 billion average analysts’ estimate and demonstrating dominance in mobile advertising.
The company reported net income of $4.3 billion, or $1.44 a share, in the period. Recent U.S. tax law changes forced Facebook to set aside more money to pay taxes, cutting earnings by 77 cents a share, it said. Without that, profit would have been $2.21 a share. Analysts were looking for $1.95 a share, according to data compiled by Bloomberg.
Facebook has become more self-critical since revealing a campaign by Russia to spread political discord around the 2016 presidential election that reached an estimated 150 million U.S. users on Facebook and Instagram. The company has been cooperating with Congress, while publicly questioning whether social media is good for democracy and mental health.
Russia’s operation — in the U.S. and ahead of other elections around the world — was made easier by incentives on Facebook that reward attention-grabbing content. Zuckerberg is looking to tweak the news feed to emphasize news and advertising from trustworthy sources, local providers and authentic accounts.
February 20, 2018
Did Russia Affect the 2016 Election? Its Now Undeniable
by MeDaryl • Cars • Tags: 2016 election, american, indictment, Robert Mueller, Russia, Russian, security
For some time, there has been a conflation of issues—the hacking and leaking of illegally obtained information versus propaganda and disinformation; cyber-security issues and the hacking of elections systems versus information operations and information warfare; paid advertising versus coercive messaging or psychological operations—when discussing “Russian meddling” in the 2016 US elections. The refrain has become: “There is no evidence that Russian efforts changed any votes.”
But the bombshell 37-page indictment issued Friday by Robert Mueller against Russia’s Internet Research Agency and its leadership and affiliates provides considerable detail on the Russian information warfare targeting the American public during the elections. And this information makes it increasingly difficult to say that the Kremlin's effort to impact the American mind did not succeed.
The indictment pulls the curtain back on four big questions that have swirled around the Russian influence operation, which, it turns out, began in 2014: What was the scope of the Russian effort? What kind of content did it rely on? Who or what was it targeting, and what did it aim to achieve? And finally, what impact did it have?
Most of the discussion of this to date has focused on ideas of political advertising and the reach of a handful of ads—and this discussion has completely missed the point.
So let’s take these questions one at a time.
1. What was the scope of the Russian effort?
The Mueller indictment permanently demolishes the idea that the scale of the Russian campaign was not significant enough to have any impact on the American public. We are no longer talking about approximately $100,000 (paid in rubles, no less) of advertising grudgingly disclosed by Facebook, but tens of millions of dollars spent over several years to build a broad, sophisticated system that can influence American opinion.
The Russian efforts described in the indictment focused on establishing deep, authenticated, long-term identities for individuals and groups within specific communities. This was underlaid by the establishment of servers and VPNs based in the US to mask the location of the individuals involved. US-based email accounts linked to fake or stolen US identity documents (driver licenses, social security numbers, and more) were used to back the online identities. These identities were also used to launder payments through PayPal and cryptocurrency accounts. All of this deception was designed to make it appear that these activities were being carried out by Americans.
Additionally, the indictment mentions that the IRA had a department whose job was gaming algorithms. This is important because information warfare—the term used in the indictment itself—is not about "fake news" and “bots." It is about creating an information environment and a narrative—specific storytelling vehicles used to achieve goals of subversion and activation, amplified and promoted through a variety of means.
2. What kind of content did it rely on?
As the indictment lays out in thorough detail, the content pumped out by the Russians was not paid or promoted ads; it was so-called native content—including video, visual, memetic, and text elements designed to push narrative themes, conspiracies, and character attacks. All of it was designed to look like it was coming from authentic American voices and interest groups. And the IRA wasn’t just guessing about what worked. They used data-driven targeting and analysis to assess how the content was received, and they used that information to refine their messages and make them more effective.
3. Who or what was the operation targeting, and what did it aim to achieve?
The indictment mentions that the Russian accounts were meant to embed with and emulate “radical” groups. The content was not designed to persuade people to change their views, but to harden those views. Confirmation bias is powerful and commonly employed in these kinds of psychological operations (a related Soviet concept is “reflexive control”—applying pressure in ways to elicit a specific, known response). The intention of these campaigns was to activate—or suppress—target groups. Not to change their views, but to change their behavior.
4. What impact did it have?
We’re only at the beginning of having an answer to this question because we’ve only just begun to ask some of the right questions. But Mueller’s indictment shows that Russian accounts and agents accomplished more than just stoking divisions and tensions with sloppy propaganda memes. The messaging was more sophisticated, and some Americans took action. For example, the indictment recounts a number of instances where events and demonstrations were organized by Russians posing as Americans on social media. These accounts aimed to get people to do specific things. And it turns out—some people did.
Changing or activating behavior in this way is difficult; it’s easier to create awareness of a narrative. Consistent exposure over a period of time has a complex impact on a person’s cognitive environment. If groups were activated, then certainly the narrative being pushed by the IRA penetrated people’s minds. And sure enough, the themes identified in the indictment were topics frequently raised during the election, and they were frequently echoed and promoted across social media and by conservative outlets. A key goal of these campaigns was "mainstreaming" an idea—moving it from the fringe to the mainstream and thus making it appear to be a more widely held than it actually is.
This points to another impact that can be extracted from the indictment: It is now much more difficult to separate what is “Russian” or “American” information architecture in the US information environment. This will make it far harder to assess where stories and narratives are coming from, whether they are real or propaganda, whether they represent the views of our neighbors or not.
This corrosive effect is real and significant. Which part of the fear of “sharia law in America” came from Russian accounts versus readers of InfoWars? How much did the Russian campaigns targeting black voters impact the low turnout, versus the character attacks run against Clinton by the Trump campaign itself? For now, all we can know is that there is shared narrative, and shared responsibility. But if, as the indictment says, Russian information warriors were instructed to support “Sanders and Trump,” and those two campaigns appeared to have the most aggressive and effective online outreach, what piece of that is us, and what is them?
Persuasion and influence via social media cannot be estimated in linear terms; it requires looking at network effects. It is about the impact of a complex media environment with many layers, inputs, voices, amplifiers, and personalities. All of these elements change over time and interact with each other.
So anyone trying to tell you there was little impact on political views from the tools the Russians used doesn't know. Because none of us knows. No one has looked. Social media companies don't want us to know, and they obfuscate and drag their feet rather than disclosing information. The analytical tools to quantify the impact don’t readily exist. But we know what we see, and what we heard—and the narratives pushed by the Russian information operation made it to all of our ears and eyes.
The groups and narratives identified in the indictment were integral parts of the frenzied election circus that built momentum, shaped perceptions, and activated a core base of support for now-President Trump—just as they helped disgust and dismay other groups, making them less likely to vote (or to vote for marginal candidates in protest).
In the indictment, Trump campaign officials are referred to as “unwitting” participants in Russian information warfare. This gives the White House an out—and a chance to finally act against what the Kremlin did. But the evidence presented in the indictment makes it increasingly hard to say Russian efforts to influence the American mind were a failure.
Molly K. McKew (@MollyMcKew) is an expert on information warfare and the narrative architect at New Media Frontier. She advised Georgian President Mikheil Saakashvili’s government from 2009 to 2013 and former Moldovan Prime Minister Vlad Filat in 2014-15.
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Read more: https://www.wired.com/story/did-russia-affect-the-2016-election-its-now-undeniable/