How brands might foot the bill for Facebook privacy – Do Not Read Until Monday

Grumpy Forever ❤️ Do Not Read Until Monday.

Facebook’s News Feed update shows how brands might foot the bill for privacy

First, I’d like to thank Facebook for forcing me to trash my intended topic for the week at the 11th Hour, given its latest News Feed update on Thursday afternoon. 

I used to have a piece of advice I’d give to anyone analyzing a platform update: How could they monetize this. In the case of Facebook’s pivot to privacy, we may have just got our answer – having brands subsidize it.

The latest News Feed update seeks to promote content from a users’ closest friends and pages they follow – standard things. However, it’s added a new signal to its special algorithm sauce: direct response surveys.

Facebook’s announcement on the change suggests these battle royale tournaments between friends, pages and posts will recur regularly.

Not a bad plan, as tastes can change on a whim.

This could affect brands in a couple ways. First, Facebook will have loads more personal, affinity data flowing in. Though times have changed from the organization offering it up willy nilly, I’m sure they’ll find a way to put it to good use. It could mean superfans and advocates see posts more ably and more often. It could mean…

It will cost more for advertisers to expand beyond these core audiences. More refined Relevance and Ad Recall scores – which this data could influence – could potentially create a challenge for certain brands, campaigns and/or products. As in, if a user is unfamiliar with your content or branding, it may get the “thumbs down” – an uphill challenge for CPM.

Another challenge will be Facebook’s option to allow users to clear their on- and off-platform activity. (But not phone tapping, which they’re totally not doing.) The company essentially stated that showing how the sausage is made should sell more sausages, but those erasing or turning off tracking will be most costly to reach.

Facebook could use some additional revenue as well, seeing as how it’s bumping pay for the contractors sifting through caustic content on the platform. Likely the same ones sniffing out coordinated activity and enforcing its new, harder line on livestreaming violations as well.

It also may need to cough up a few billion to the FTC, which may be monitoring it for the next 20 years.

Oh, and here’s why you may have seen a bunch of Facebook groups go private.

And what they’re doing about it.

Odds + The End


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