MESSAGE
DATE | 2021-01-29 |
FROM | Ruben Safir
|
SUBJECT | Subject: [Hangout - NYLXS] You cat the Prodcut
|
From hangout-bounces-at-nylxs.com Fri Jan 29 13:04:50 2021 Return-Path: X-Original-To: archive-at-mrbrklyn.com Delivered-To: archive-at-mrbrklyn.com Received: from www2.mrbrklyn.com (www2.mrbrklyn.com [96.57.23.82]) by mrbrklyn.com (Postfix) with ESMTP id 96DDA163FC0; Fri, 29 Jan 2021 13:04:49 -0500 (EST) X-Original-To: hangout-at-nylxs.com Delivered-To: hangout-at-nylxs.com Received: from [10.0.0.62] (www.mrbrklyn.com [96.57.23.83]) by mrbrklyn.com (Postfix) with ESMTP id 43E3B163FAC; Fri, 29 Jan 2021 13:04:44 -0500 (EST) To: Hangout , Rick Moen From: Ruben Safir Message-ID: Date: Fri, 29 Jan 2021 13:03:37 -0500 User-Agent: Mozilla/5.0 (X11; Linux x86_64; rv:78.0) Gecko/20100101 Thunderbird/78.7.0 MIME-Version: 1.0 Content-Language: en-US Subject: [Hangout - NYLXS] You cat the Prodcut X-BeenThere: hangout-at-nylxs.com X-Mailman-Version: 2.1.30rc1 Precedence: list List-Id: NYLXS Tech Talk and Politics List-Unsubscribe: , List-Archive: List-Post: List-Help: List-Subscribe: , Content-Type: text/plain; charset="windows-1252" Content-Transfer-Encoding: quoted-printable Errors-To: hangout-bounces-at-nylxs.com Sender: "Hangout"
https://www.wsj.com/articles/apples-privacy-change-will-hit-facebooks-core-= ad-business-heres-how-11611938750?mod=3Dhp_lead_pos6
Apple=92s Privacy Change Will Hit Facebook=92s Core Ad Business. Here=92s H= ow. Patience Haggin, Keach Hagey and Sam Schechner 8-10 minutes
Facebook Inc. FB -3.34% will suffer damage to its core business when Apple Inc. AAPL -4.46% implements new privacy changes, advertising industry experts say, as it becomes harder for the social-media company to gather user data and prove that ads on its platform work.
Facebook warned this week that Apple=92s new feature, which is expected to roll out this quarter, will pose risks for its business, but the company hasn=92t detailed how it is exposed. Facebook in August pointed to a small corner of its business that facilitates ad placements on third-party sites and apps. It has also played up how the change would hit small developers.
The core of Facebook=92s business, its flagship app and Instagram, would be under pressure, too. The Apple change will require mobile apps to seek users=92 permission before tracking their activity, restricting the flow of data Facebook gets from apps to help build profiles of its users. Those profiles allow Facebook=92s advertisers to target their ads efficiently.
The change will also make it harder for advertisers to measure the return they get for the ads they run on Facebook=97how many people see those ads on mobile phones and take actions such as installing an app, for example.
=93The market dynamics here are going to shift heavily,=94 said Simon Poulton, vice president of digital intelligence at WPromote, a digital-marketing agency. =93If you are marketing on Facebook and the results are going down because the efficiency is going down, you are going to turn that down.=94
The chief executives of Facebook and Apple traded public barbs this week over the change. Facebook has aggressively pushed back against Apple=92s plan. On an earnings call Wednesday, Facebook Chief Executive Mark Zuckerberg said, =93Apple has every incentive to use their dominant platform position to interfere with how our apps and other apps work.=94
Apple has defended its policy, saying it is giving priority to user privacy. An Apple spokesman declined to comment further. Without naming Facebook directly, Apple CEO Tim Cook condemned =93conspiracy theories juiced by algorithms=94 and tied recent social unrest to an argument that app-tracking tools are turning consumers into advertising products.
=93 =93The market dynamics here are going to shift heavily.=94 =94
=97 Simon Poulton, WPromote
The extent of the potential financial impact on Facebook, which generated $86 billion in revenue last year, isn=92t clear. The company said it expects revenue to be stable in the next two quarters. In the past year, Facebook=92s business has thrived despite the coronavirus pandemic and a boycott by several advertisers over hate speech on its platform.
Eric Seufert, an analyst and marketing strategy consultant who has studied Facebook=92s business, said he expects the company to take a 7% revenue hit in the second quarter as marketers spend less and ad prices decline as a result of Apple=92s change.
The fight is happening as Facebook and other tech giants are under antitrust scrutiny over their dominance. Companies looking to forestall action by regulators in such situations often argue they face substantial competitive threats in the marketplace.
=93As we have said repeatedly, we believe Apple is behaving anticompetitively by using their control of the App Store to benefit their bottom line at the expense of app developers and small businesses,=94 said a Facebook spokesman.
Part of the power of Facebook=92s business is how it gathers data from mobile apps=97what people do on the apps, what they search for, what they buy and more. More than 85,000 iOS apps had installed Facebook code that relays data back to the company as of December, according to analytics firm MightySignal.
The data is often coupled with a unique Apple identifier for the app user=97a string of numbers and letters that helps Facebook identify individuals, allowing it to add that data to their profiles, or =93identity graph.=94 App data makes up about 15% of user profiles, WPromote=92s Mr. Poulton estimates.
Apple=92s planned privacy change will mean that apps can=92t pass along that identifier without users=92 permission, thereby limiting what Facebook can glean.
Ad buyers say Facebook=92s insight into app usage is part of its value proposition. That data lets Facebook better optimize ads to the people most likely to become lucrative customers, saving advertisers money in the long run. For instance, a mobile game dependent on in-app purchases can target ads at users with a history of heavy in-game spending.
Many apps are dependent on highly targeted ads to drive downloads. Dating app Bumble Inc. cited the coming Apple change as a risk factor in its filings for an initial public offering and predicted that 20% or fewer of its users would opt to be tracked.
Newsletter Sign-up
Technology
A weekly digest of tech reviews, headlines, columns and your questions answered by WSJ's Personal Tech gurus.
Apple=92s restrictions will also strike at Facebook=92s ability to show how well its advertising works. Facebook gives advertisers metrics such as how many people who viewed an ad in the past week went on to buy the advertised product. The company relies on Apple=92s identifier to get this information on iOS mobile devices=97which account for a significant portion of Facebook activity: Among U.S. smartphone users, 45.3% used iPhones in 2020, according to Statista.
Madan Bharadwaj, chief technology officer and co-founder of Measured, a marketing measurement company, estimates that Facebook will only be able to claim credit for about 50% of the sales it currently does, as a result of the change.
=93It=92s going to have a huge impact on the total amount of revenue, or conversions, that Facebook can attribute to itself, which is basically the signal that all advertisers use for making investment decisions,=94 he said. =93It=92s going to drop their performance metrics hugely.=94
In August, when Facebook first warned of the coming Apple change, it pointed to Facebook Audience Network, a small part of its business that facilitates ad placements on websites and apps.
Apple=92s move is part of a broader tightening of privacy rules in the digital advertising ecosystem, from government regulations in Europe and California to Google=92s announced plans to get rid of third-party =93cookies,=94 bits of code used to track users on desktop browsers.
In the fall, Facebook warned its partners that =93upcoming digital privacy initiatives affecting multiple browsers will limit businesses=92 ability to measure people=92s interactions across domains and devices,=94 according to correspondence viewed by The Wall Street Journal.
The silver lining for Facebook, Mr. Poulton said, is that its competitors will also be hurt by the Apple change, particularly those in the business of serving automated, or =93programmatic,=94 ads in real-time across the web. Marketers who want to shift spending away from Facebook may scan the landscape of options and say, =93=91Facebook=97it=92s not as g= ood as it once was, but it=92s better than this,=92=94 Mr. Poulton said.
How Apple and Google Formed One of Tech=92s Most Powerful Partnerships
0:00 / 8:03
5:31
How Apple and Google Formed One of Tech=92s Most Powerful Partnerships
How Apple and Google Formed One of Tech=92s Most Powerful Partnerships Apple and Google have one of Silicon Valley=92s most famous rivalries, but behind the scenes they maintain a deal worth $8 billion to $12 billion a year according to a U.S. Department of Justice lawsuit. Here=92s how they came to depend on each other. Photo illustration: Jaden Urbi
Write to Patience Haggin at patience.haggin-at-wsj.com, Keach Hagey at keach.hagey-at-wsj.com and Sam Schechner at sam.schechner-at-wsj.com
-- =
So many immigrant groups have swept through our town that Brooklyn, like Atlantis, reaches mythological proportions in the mind of the world - RI Safir 1998 http://www.mrbrklyn.com DRM is THEFT - We are the STAKEHOLDERS - RI Safir 2002
http://www.nylxs.com - Leadership Development in Free Software http://www.brooklyn-living.com
Being so tracked is for FARM ANIMALS and extermination camps, but incompatible with living as a free human being. -RI Safir 2013 _______________________________________________ Hangout mailing list Hangout-at-nylxs.com http://lists.mrbrklyn.com/mailman/listinfo/hangout
|
|