Can personalized ads and privacy coexist?

Last week I asked my audience: can personalized ads and privacy coexist?

Can they, can they really?

But first, a disclaimer!

I hate Facebook and I actively dislike Google and Apple. Yet I sell personalized ads on an industrial scale on their platforms and use all of their products (except Apple's overpriced products, hate in the comments please). We're feeding the monster. You might call me a hypocrite and you are mostly right. But the monopolies that these companies have built makes it impossible for a marketeer and brands not to take part. And I like being a marketeer so I take part. It makes me feel weird inside. I do however have the power of free speech, and I will use it to spread my opinion on privacy vs. ad personalization.

Anyways, back to the topic at hand. Apple's going to force apps to ask you if you're ok with your data being tracked so it can be sold to advertisers. Sounds reasonable. If I tell you in private that I've been playing Justin Bieber's lonely on repeat (focus thing, no judgements) I would like for you to ask me first if you want to tell all your friends about my music taste. Tracking and selling this kind of data is Facebook's business model, and they don't like to ask your permission first. You're a reasonable person, so you'd say no. And that threatens Facebook's business model. So Apple and Facebook are starting a fight with Apple claiming a right to privacy and Facebook saying that more privacy in advertising will hurt small businesses.

Vin, you're not answering the question! Sorry. Can privacy and personalized ads coexist?

Advertisers don't know your name, but they know just about everything else, especially Facebook. And by everything I mean almost everything. They know that 1xbCd876c#@ likes cycling, craft beers and their guilty pleasure's Post Malone (I told you, no judgements). They might also know you're pregnant before you do. The list of things that Facebook tracks is breathtaking. Oh, you're interested in the "ICD-10 Chapter V: Mental and behavioral disorders? We've got some products for you! They are serving ads based on these and thousands of other interest, affinities and in-markets. Does it even matter advertisers don't know my name? Nike could give less of a shit if they're selling 200$ sneakers to 1xbCd876c#@ or Vincent van der Holst. They are one and the same thing for them.

If I would go to church and confess in the booth, I'd be perplexed and creeped out if the priest knows what I did this week, who I met and that my most listened song in 2020 is Shallow (priests don't judge, neither should you!). If it were Google Home on the other side of the booth I wouldn't be surprised but equally creeped out. Maybe there is a god, and her name is Alexa. Imagine Bruce Almighty where Morgan Freeman is Google Home. That would be one shitty movie. But I digress.

I actually believe Google knows more about me than my Girlfriend. I tell her everything about myself, everything. And I tell my girlfriend almost anything. Think about it. I spend roughly 45 waking hours with Google each week and about half of that with my girlfriend. Can we expect privacy from companies that know more about us than our friends, family and spouse? And whose business model depends on selling that data to advertisers? Can we really answer yes to that question?

Ever thought Facebook is listening to you? You're not alone. The truth is more disturbing, yes, MORE disturbing. Facebook and Google know so much about your behaviors, interests, friends and families that you don't even need to speak out loud. They know what you're thinking and feeling without even listening to you. Sounds like the perfect boyfriend. Perfect, but creepy. They know your weaknesses and strengths and will exploit both for profit. One of these exploitations is enabling personalized ads that trigger your emotions to buy a product or service. And suddenly you find yourself wearing a $200 North Face sweater because it's what the young kids wear #quarterlifecrisis.

The majority of you voted no last week (two thirds). I suspect most of you are also creeped out by this. And Apple is recognizing you're creeped out, so they're demanding opt-in for tracking. Facebook no like.

If we don’t, they will block Facebook from the App Store, which would only further harm the people and businesses that rely on our services. We cannot take this risk on behalf of the millions of businesses who use our platform to grow.

According to Mark, it's all about helping the small businesses. It's definitely not about protecting their business model.

Spoiler alert! It is.

Facebook did the math, and calculated that advertisers would lose 60% of revenue if they lose ad personalization opportunities. Like most things that Mark says, this is not true, but suppose it would be. That basically means that Facebook would lose 60% of their revenue if they don't sell anonimized personal details to advertisers (assuming advertisers want to maintain the same ROI so they cut their bids and budgets, forcing Facebook to lower their CPC's to a new and cheaper status quo). Simply said, Facebook will be forced to sell ads for less so advertisers are able to maintain their ROI. After the dust settles things will be mostly the same for small businesses (and large brands). The only one that loses is Facebook, so I understand why Facebook is trying to sway public opinion against Apple's move towards privacy. It threatens the core of their business model (99% of revenue from FB is advertising). And shareholders need their growth and profit margins. I hope and expect they will fail miserably. Sorry Mark, but this one's for Tim.

As marketeers I think that we have a moral obligation to create relationships between people and brands that benefit both. It means we need to think about the brands we choose to work with and It means we think about how far we will go with personalizing ads and chasing people accross the web. Agencies want to create lasting relationships with their brands. The catalyst for a great agency/brand relationship is helping brands creating lasting relationships with people. Personalize ads aren't all bad if we respect the trust and information we buy from people. If we don't we're sacrificing short term gains for lasting relationships.