Originally published December 22, 2012
Over the past few days and weeks the press has spilled a lot of ink about Facebook's, and its newly acquired company, Instagram's, revised privacy, advertising and other policies. Whether or not the recent policy changes are significant is yet to be determined, but what is clear is that the public is actually paying attention and that the changes may affect how advertisers can use these platforms.
The Instagram Storm
This past Monday, Instagram announced a number of changes to its Terms of Use and Privacy Policy that caused some consumers and companies to fear that Instagram could sell posted photos to advertisers and others. Users vehemently voiced their objections, and many reportedly left, or threatened to leave, the photo-sharing website. While a closer reading of the revised Terms of Use and Privacy Policy might have calmed some of these fears, consumers were justifiably confused about Instagram's intentions. By Tuesday, Instagram issued an apologetic blog post clarifying that Instagram will not sell photos, and that users can still control who sees their photos by using the "private" setting. Instagram also promised to clarify the revised Terms of Use and Privacy Policy before implementing the revised terms.
Lost in the frenzy was Instagram's stated intention to develop native forms of advertising for its site, similar to Facebook's ads with social context. If Instagram is unable to regain consumer confidence that it will not infringe on consumers' privacy or other rights, it may lose important revenue opportunities and advertisers may well lose a potentially exciting new medium for their marketing.
Facebook Privacy Enhancements
Avoiding a similar public outrage, earlier this month, Facebook announced a number of changes to its data use policies aimed at helping users better manage their own privacy controls. According to Facebook, these changes (which include a new, easily findable, privacy shortcut toolbar) are intended to minimize unpleasant surprises for Facebook users.While users may be skeptical of Facebook's intentions given past FTC charges against Facebook (settled roughly a year ago), it's hard to argue that these privacy changes are not a step in the right direction for users.
Facebook "Disenfranchises" Users
Unlike Facebook's privacy changes, its removal of user voting on changes to its governing policies met with howls of disapproval. About 650,000 Facebook users voted to try and save their "right to vote," missing the over 300 million voter threshold. So, now, Facebook can make changes to its policies without user voting, although it still promises to provide a notice period for review and comment, as well as new webcasts and other means to communicate privacy concerns.
Lessons For Advertisers
There are at least two takeaways for advertisers from these latest developments: First, contrary to popular belief, users/consumers do sometimes pay attention to whatterms and conditions say and mean.Therefore, it's important to understand the implications of your online policies, and to only demand the rights you need. Second, as advertisers formulate their social media plans, it's important to know what limitations the social media platforms are putting on use of consumer data for advertising purposes - as well as any restrictions on how advertising can be disseminated on the social media platforms. The social media platforms are constantly struggling between satisfying users and advertisers. Brands must stay up to date on which way the pendulum is swinging.
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