FaceBook wants to pay you!
Platforms and Walled Gardens
Now that I have your attention, hear me out.
Way back in 2016, Facebook was particularly interested in what teens do on their phones as the demographic was increasingly abandoning the social network in favour of Snapchat and later TikTok. They started a “"Research” program to track users’ mobile usage behaviour using testing intermediaries and paid consenting users up to $20 per month plus referral fees to sell their privacy by installing the iOS or Android “Facebook Research” app. That’s it. They have paid earlier and could start again.
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So, how much would you demand from Facebook if it wants to monetise your data by selling it to advertisers? If you have doubt about your legitimate share in Facebook’s windfall from capturing and selling your attention , perhaps you would want to take Joker’s advise about charging appropriate fees (go to 1:44 if you are in hurry)!
You can also find an estimate of Facebook's average revenue per user (ARPU) from 2012 to 2019 in this newsletter to help you put in your bids.
DTW
During the Week, Facebook ran Full-Page Advertisements in leading US print publications. In this media blitzkrieg , Facebook claimed that the new iOS 14 update would harm small businesses who depend on Facebook’s ad network to reach their customers. It also claimed that Apple is against the free internet and Apple’s iOS 14 privacy changes “will change the internet as we know it,” and force websites and blogs “to start charging you subscription fees” or add in-app purchases due to a lack of personalized ads.
It is ironical that world’s second largest internet advertisement company had to run an advertisement campaign in print editions of leading newspapers including New York Times, the Washington Post, and the Wall Street Journal.
I am so glad that Steve Jobs is not around to respond and thus Facebook got only a mild slap on the wrist from an extremely gentle Tim Cook who politely explained that Facebook can continue to “track their users provided they ask for their permission first.”
Of course, this is not the first time that Apple and Facebook are in fight over user data. As I wrote at the beginning, an investigation by TechCrunch found that since 2016 Facebook had been using three app beta testing services to distribute the Facebook Research app: BetaBound, uTest and Applause. Facebook tried to sidestep the App Store and rewarded teenagers and adults to download the Research app and give it root access to network traffic in what may be a violation of Apple policy so Facebook can decrypt and analyse their phone activity. This mechanism was also used to pay users ages 13 to 35 up to $20 per month plus referral fees to sell their privacy by installing the iOS or Android “Facebook Research” app. When this practice was exposed, Apple blocked their Enterprise Certificate program for Facebook and thus forced Facebook to shut down the Facebook Research app for iOS.
Two things stand out in this latest episode between two internet behemoths- First, it is a question of business model of advertisement vs subscription AND second, distribution triumphs product.
Apple’s business model has been based on vertical integration of product, software and App Store creating a seamless experience and charging a premium price for the entire bundle. Over last few years , they have created a counter positioning of “Privacy” against both Google and Facebook.
Apple has started bundling multiple services into its subscription plans. Latest Apple One plan includes access to Apple Arcade, Apple Fitness+, Apple Music, Apple News, Apple TV+, and iCloud.
Facebook on the other hand has tried to build an AdTech empire, which rules great stretches of our digital lives — and it seems impregnable. Facebook is still world’s largest social network and Instagram and WhatsApp gives the company a large footprint in the Attention Economy just behind Google.
Second issue is of controlling distribution or simply put “Distribution Triumphs Product”. Apple owns access to world’s most premium customers through its tight control over App Store. Of course, it is no saint and has been accused of extracting a 30% rent from everybody who makes money through App Store. Of course, Apple has gone to town to look and act like an enthusiastic defender of user privacy. It is also true that its bottom line does not depend on advertising, and thus getting rid of intrusive marketing of Google and Facebook thus destroying their revenue is good for its business.
Steve Jobs has done something similar with Adobe Flash when he banned it from all iPhone, iPod and iPad. And now Adobe will no longer be supporting Flash Player after 31 December 2020. In fact, Adobe strongly recommends all users immediately uninstall Flash Player to help protect their systems.
Google itself has been accused of controlling the third party developers on its PlayStore and monopolising search through tighter integration of android/chrome browser. Amazon has been accused of monopoly over its marketplace and squeezing its suppliers for the last pennies. Ultimately, all the big Tech giants want to create their own walled gardens owning all the users and extracting maximum value of their attention.
Once in a while, they might shed few tears when some other big tech player is seen to be flirting with their users.
कौन रोता है किसी और की ख़ातिर ऐ दोस्त
सब को अपनी ही किसी बात पे रोना आया
-साहिर लुधियानवी
OTW
Over the Weekend, I re-read passages from Facebook: The Inside Story by Steven Levy. The concluding chapter on “The Next Facebook” struck me as most prescient of Mark Zuckerberg’s ambitions. This future is all about “A Privacy-focussed vision for social networking”. Mark has worked very hard to integrate the three different services of Facebook, Instagram and Whatsapp to create an integrated FACEBOOK ecosystem with proposed encryption and seamless integration across these services. Throw in Libra as a default currency and Mark could crown himself as a new Emperor of half the humanity.
I would also recommend two Netflix productions on Facebook’s various tryst with privacy violations - The Great Hack and The Social Dilemma. And of course, if you want to go down the rabbit hole of BigTech and surveillance then do watch Snowden which is more suspenseful and/or unbelievable than current spy dramas.
I would like to hear from you. Do share your thoughts on the Running Platform Marketing Life
I Love You
Shailendra
PS- Facebook's average revenue per user (ARPU) has increased from 5 USD(2012) to about 30 USD(2019).
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Facebook is absolutely aiming to become the commander in chief of users data. Given that they have been masking their efforts by the name of personalised content for users. Many users still don't know about the thin line that exists between privacy breech and personalisation. A millennial user is inclined more towards the element of convenience and comfort rather than security. I think more efforts should be made into making them aware of the possible consequences. The situation has become more serious after the Cambridge Analytica case. A user must be aware of the course of action that he\she should follow in such situations. I believe more clarity is required on the kind of regulations that exist in safeguarding users data. Also today's customer has his footprints in multiple walled gardens, and he has the freedom to chooss which one to go to for what product or service. And it is these options that are enabling companies to provide better services from their end.
Considering what a myth privacy is ... I would love to be paid for it $$$. What I cannot control, I at least make money of it ...