The Problems Faced by Google Regarding Advertising on Orkut

In 2004, Google launched it social networking site called Orkut. It was unsuccessful in the U.S. but it was largely popular in Latin America, mainly Brazil. The website was used by 70% of the Internet users. Google was plagued by allegations that Orkut communities of neo-Nazis, organized gangs, pedophiles and racists were being formed. It was being used to spread child pornography, pedophilia and for Internet trafficking.

Google was then asked to hand over user data to Brazilian authorities for identifying the perpetrators.

Google refused to do so and as a result, criminal charges were filed against Google's head of Brazilian operations. When Google introduced advertising on Orkut, there were reports that ads were appearing alongside illegal content. Google eventually cooperated with the authorities.

Stakeholders are people/groups who can be affected positively or negatively by a company's actions. Looking at Google's situation with Orkut, who are the global stakeholders that Google needs to be mindful of as it determines its social media and ad policy going forward.

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How are the stakeholders each affected by what Google does in the short and the long term?

When moving forward with their social media and ad policy there are a number of stakeholders Google should be mindful of stakeholder's such as the user, The executives and the companies that advertise through them. The user affected by because they are the ones using the sites and viewing these ads. The majority of users on social media is underage and can be influenced by what they see on social media.

In long term affect on users is if Google decides to cut it's losses and shut the their social media sites. This in turn eliminates something that kept a lot of American connected with friends and family and also how the deal and manage business. In countries like Brazil could decline in the long run in Brazilian society.

In the short term and long term their executives and investors if not handle properly, they will continue to battle lawsuits. Short-term advertiser will be affected because their product won't be promoted and advertise. In the long term will pull out form Google and the amount of money going onto network advertising spending yearly will decline. For both advertiser and user they would be losing a resource if Google cut ties or fell to fix the existing problem.

How Google handles user data is one of the key challenges facing the company as it moves forward. What would you suggest as a solution? Google privacy issue has been the public concerns for years. Google states that they do not share user data with third parties. Last year Google revealed how the handle user data when it come to government request. Release that they do not release any information with the user consent excerpt as required by law, on request by a user or system administrator, or to protect our systems and also when Google is required by law to do so; and when they feel they are compelled to disclose personal information because they reasonably believe it's necessary in order to protect the rights, property or safety of Google, its users and the public.

All this sounds good but it does not keep us from worrying about our personal information and how it plans on being used. I think one solution to this is some form of communication between the user and Google. This is to clarify what is actually being collected and why and how it can be used for the good of the user and not just the good of the company.

Also how the data enables better and smarter experiences for them. Improving Google's transparency is also apart of the solution. Consumers need to know that they can trust Google. They should make their privacy policies to where the consumer understands them and outlines what data they are using, and the steps they are taking to protect that data and keep it anonymous. Google should send notification of when they are about to use a user data and let them decide whether or not they want that information to be shared.

Google should also try to minimize the amount of personable information they request from a user. I think if Google communicate openly and honestly with it's users, in return it allows the users to trust them more. This hopefully will help with the privacy and data collection concerns.

Are there additional lessons from Brazil and Orkut that can be applied that would help them develop a better strategy of entering a new international market (ie. Joint venture with local company, etc). What are the pro's/con's of alternate strategies?