Facebook Vs Apple – What’s going on – We Explain in plain English
You will have heard or read a bit about Apple’s new update to their phones and Facebook, but Facebook Vs Apple – what really is going on? Why does this matter? And what’s going to happen?
In short, Facebook is in trouble, no longer the nice guys letting you share your family photos, they have been increasingly revealed as the Data mongers they are. Taking everything you do and trying to tailor advertising that might just work. They also went public and ever since that point, money, profits and so on have taken a priority.
All this is also spilling out on their Instagram and WhatsApp services as well, as both of these need to make money somehow.
Apple is different, they make hardware, iPhones to you and me. And the crux here is that so long as Hardware sells they’re fine and with some 54% of the mobile phone market (UK data), they are in a super-strong place.
What has Apple done?
In a nutshell and super simple. They have added a pop up when you open your Apps that read along the lines of ‘Do you want this App to track your Data?’ (See image above).
And you can guess what the take up of that is. No Thank You! The current estimate is that around 85% of people have said no to Facebook Tracking and this has been a killer to Facebooks Data tracking.
So Round one in the battle Facebook Vs Apple goes to Apple.
The Difference
Apple can do this because they sell Hardware. They can dictate to App Builders how the Apps work – the system is completely proprietary. Nothing Facebook can do about it.
Facebook suffers a) because from a PR angle this is a disaster. They have been shown that their business model is based on invading people’s privacy and literally tracking everything about them. People are not happy. and b) because they are losing the data they so desperately need to allow advertisers to have an ROI on their marketing spend.
Advertising on Facebook
I am sorry and I am not sorry. For years I’ve recommended to our clients, who incidentally this Blog is kept up to date for, not to bother with Facebook Ads. Facebook have over the years so closed down the News Feed and Personal involvement of their products. While invading everything with their Adverts and whatnot – most people seem quite happy not to use Facebook at all. Add to that Facebook’s plans for Instagram and WhatsApps and those tools are going down the pan as well.
The problem was always an ROI – you just don’t get it with Facebook. My explanation is that if you’re looking for a train time or cinema ticket, head to Google. It will give you the answer straight. If you’re looking for a historical fact or a Statistic on Covid-19 head to Google. You’ll find it. But if you’re looking for that Linen Shirt or a Plumber, be prepared to be inundated with Adverts.
On Google… fear not, wind your way through, you might find the thing you’re after. But Facebook – forget it. People just do not turn to Facebook for this sort of information. What game shall I play? What’s the latest news on Football? It’s just not going to appear on Facebook.
Facebook vs Apple – Facebook’s Fight Back
I think it is safe to say Facebook is losing this round to Apple. Apple for once is more or less right and Android will follow suit. And here is another little take home for you as well:
People are learning that their Data Matters, giving up Data costs people in ways that people are just starting to realise. The freedom of Social Media companies to help themselves to people privacy will come to an end.
So, how does Facebook fight back? Answer; by turning into Amazon. Ok – that sounds but weird, but it is what’s happening. Facebooks’ answer is to keep consumers and businesses on site. eCommerce giants like Shopify hook into Facebook in seconds and Facebook is desperate to get big brands onto Facebook. That way the advertiser directs people directly to the products being advertised and people buy them straight off Facebook.
What’s really important here is that suddenly all your data is exposed again. Facebook’s answer to Apple is to collect their data another way. Once you start navigating Facebook for your Shopping preference, suddenly Facebook knows all about you again.
It’s a risky move, but once that’s happening
Facebook doesn’t really take risky moves, so you’re welcome to dispute my theory, but Facebook is pushing ‘Shops’ like never before. Hook your eCommerce into Facebook for extra exposure advertise accordingly, get your ROI, forget the Apple App – everything comes through what you buy via Facebook.
If you think about it it will be fine… for example, if you’re after a new Kitchen Knife – and you’re aware that things can be brought from Facebook and you feel safe because you selected ‘Do Not Track Me’ on Facebook… you can still head to the App, search, find and buy… and once you reach the sellers’ website anything goes – they will collect all the data they want, cookies or no cookies.
There is one more factor to take into account, Facebook is developing a Crypto Currency called the Diem, a key difference to BitCoin is that the Diem will be pegged to something like the Dollar, it will not bounce around like BitCoin. So it will be available to everyone and they will all know what’s it’s worth and FGacebook can produce as much of it as they like.
Now, you’ve got Facebook in control of your shopping power from App, Advertiser, Merchant, Websites to Payment. The result of all the friction between Facebook and Apple will be Round two to Facebook, in a far bigger way.
The good news is that the Diem is receiving some fairly heavy opposition, precisely for all the Data Tracking reasons described above, but you can see why Facebook would want to invest in the project and also why they would not be interested in making money out of it (yet). It will basically allow them to continue telling their Advertisers to keep spending their Ad Budgets on Facebook. That’s where the real money is.
As for consumers, they’re still at the bottom of the pile I’m afraid.
And for Facebook Vs Apple – the battle continues.