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CEO Mark Douglas Explains Why it’s Not in Consumer’s Interest to Opt Out
Facebook continues to establish its dominance despite Apple's iO4 privacy updates.
Written by Melissa Yap
SteelHouse President and CEO Mark Douglas appeared on Bloomberg radio alongside hosts Paul Sweeney and Matt Miller, to discuss Apple’s latest iO14 update, and how these latest privacy changes leaves Facebook unscathed. Tune into the radio segment here, and read on for a summary of the key takeaways.
Facebook Not Only Has Deep Pockets – They Have a Finger in Every Pie
Apple’s iO14 announcement doesn’t affect Facebook. Why? “There are two methods that Facebook uses to connect with their users. One is mobile device IDs, but also through cookies. Facebook has cookies on virtually every interactive device in the world.” Even if Apple blocks cookies and less people choose to opt-in, Facebook still has options. “The changes…aren’t going to hurt Facebook, in fact, they’ll probably help Facebook,” Douglas says.
“It’s Not About Giving People What They Want, it’s Giving Them What They Need.”
No truer words have been spoken, than this one by visionary Steve Jobs. While people might dislike targeted ads, it comes at a cost if people choose to block them – and need targeted ads more than they think. Douglas explains how the cost of a product or service also has a hidden cost, “When you buy a product, a significant percentage of that product is the cost to find you as a consumer. If you buy a mattress online for $1,000, as much as $400 of that is what its costs to market, advertise and find you as a consumer. If you make it harder for the company [by opting out], you’re going to raise that cost – and eventually that cost will go up. If you do the opposite, the cost will go down.” Douglas notes that while this is not necessarily clear to everyone now, eventually more people will catch on and choose to opt-in.
Big Platforms Hog the Marketshare – Is it Crumbs for Everyone Else?
While Facebook and Google are crushing it with their earnings, Pinterest came in with lower than expected results – if we’re seeing digital ad spend go to these big players, what does it mean for the rest of the pack?
Douglas summarizes the issue at hand, “this goes back to privacy issue, where Google are shutting down third party cookies and Apple making mobile device IDs harder. They’re consolidating their position – they’re not making things more private because their data collection is unaffected, they’re just making it harder for everyone else. Google’s changes to Chrome and Apple’s changes to mobile device ID will negatively impact everyone else. It’s coming in the form of privacy that’s not necessarily private.”