^ Don't mean to be a dick but teen ad worries are nonsense from seeking alpha type articles they feed to the masses. it is true. 18 year olds don't have money man. Also there is a heavy teen proportion on insta, there will always be another vine/tango whatever but it doesn't matter at all. All that matters is Facebook has better information on what you are going to buy than anyone else. if they continue they win.
Facebook hit the mature cycle phase and is now moving outside the platform. To address dtf's point this means they can advertise to you off of the facebook platform! That's a mind fuck. If they pull that off google is FUCKED. why? It means they can out bid you.
Lets go ahead and look at the actual tech.
Whatsapp is international information that is secure. The age group is not a "latch on to teens" game, there are many many older folk on there, it is an international "texting platform". That's the real value and it is SECURE.
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Dtf here's the highlights of your questions.
Outside the interface means I can now outbid google. Think about how insane that proposition is. The bid in facebook ads is double or MORE the bid on a google ad. This means the ROI for advertisers in facebook is more than double that of google... What does that mean if they go out of the interface?
Now they outbid the google placed ads and replace with Facebook ads. Now the advertisers have next to no reason for working with google. (Is is an extreme bullish view and will likely never happen) but the point is simple.
If advertisers make more money paying 2x the amount for a facebook ad as they do for a google ad that means Facebook has significantly better info on what you are going to buy correct? That's game over you are printing $$.
You asked about a snapchat buyout, I am saying they should have bought it before it reached this level of penetration. It's too big now. It is worth much more than $4B assuming they fix it to dual encryption. Similar to what happened to Instagram they bought that thing for $1B?! That thing is probably worth over $5B today (likely an underestimate).
I addressed the slight difference between Instagram and snap. It's real time. Now I know where you are and literally exactly what you are looking at. Instagram is not real time. Again the headache there is three fold. 1) security, 2) data Analytics you likely need a heavy scale out flash data center to analyze the photo and 3) real time ad based on the photo (already done well on Instagram beta test that has been released). None of those 3 are easy of course but good god the profits are huge if they can link it all up.
Finally yes, some of those apps are so shitty in terms of security that they can already access your info. If you don't think so try typing in the same name of a country or city destination over and over on your phone and tell me what happens to your ads. Suddenly you'll see ads for "flights to New York!". But that kinda data is complete and utter shit compared to your real personal life because many people search and type bullshit into their browser all the time. They want info on exactly who you are right here and right now so they can sell you more shit you don't need.
Anyway that's the highlights of the transaction/ what Facebook intends to do in the future.
Facebook hit the mature cycle phase and is now moving outside the platform. To address dtf's point this means they can advertise to you off of the facebook platform! That's a mind fuck. If they pull that off google is FUCKED. why? It means they can out bid you.
Lets go ahead and look at the actual tech.
Whatsapp is international information that is secure. The age group is not a "latch on to teens" game, there are many many older folk on there, it is an international "texting platform". That's the real value and it is SECURE.
---
Dtf here's the highlights of your questions.
Outside the interface means I can now outbid google. Think about how insane that proposition is. The bid in facebook ads is double or MORE the bid on a google ad. This means the ROI for advertisers in facebook is more than double that of google... What does that mean if they go out of the interface?
Now they outbid the google placed ads and replace with Facebook ads. Now the advertisers have next to no reason for working with google. (Is is an extreme bullish view and will likely never happen) but the point is simple.
If advertisers make more money paying 2x the amount for a facebook ad as they do for a google ad that means Facebook has significantly better info on what you are going to buy correct? That's game over you are printing $$.
You asked about a snapchat buyout, I am saying they should have bought it before it reached this level of penetration. It's too big now. It is worth much more than $4B assuming they fix it to dual encryption. Similar to what happened to Instagram they bought that thing for $1B?! That thing is probably worth over $5B today (likely an underestimate).
I addressed the slight difference between Instagram and snap. It's real time. Now I know where you are and literally exactly what you are looking at. Instagram is not real time. Again the headache there is three fold. 1) security, 2) data Analytics you likely need a heavy scale out flash data center to analyze the photo and 3) real time ad based on the photo (already done well on Instagram beta test that has been released). None of those 3 are easy of course but good god the profits are huge if they can link it all up.
Finally yes, some of those apps are so shitty in terms of security that they can already access your info. If you don't think so try typing in the same name of a country or city destination over and over on your phone and tell me what happens to your ads. Suddenly you'll see ads for "flights to New York!". But that kinda data is complete and utter shit compared to your real personal life because many people search and type bullshit into their browser all the time. They want info on exactly who you are right here and right now so they can sell you more shit you don't need.
Anyway that's the highlights of the transaction/ what Facebook intends to do in the future.