Facebook and Apple Fight is About Monetizing You

If you’ve downloaded and installed Apple’s iOS 14.3 update for iPhones and iPads, you’ve put yourself in the sights of Facebook and Apple. Called “App Tracking Transparency” feature, it labels apps in the App Store, telling users what data those apps collect and whether it’s used to track them for advertising. Facebook, which makes its money from advertising, says the feature will harm small businesses that rely on targeted online advertising.

In many cases, you’re worth pennies on the dollar, but there are hundreds of billions of pennies at stake. And while both sides try to cloak their stands in privacy and free enterprise, it’s really about “fee enterprise.”

The gist of Apple’s policy is that when you download an app from the App Store, your activity on the device can’t be tracked unless you give permission. Until now, you had to opt-out to avoid being stalked electronically online. Most people usually ignore the opt-out/opt-in option, and Facebook and other web-based operations have made a lot of money by tracking you and selling the data to companies who want to sell something you want – or have indicated you may want.

According to a recent article in Forbes, Facebook itself estimates a 60-percent swing in advertising effectiveness between targeting and non-targeted advertisements. Facebook’s ad charges the article notes, will presumably match its ad-placement effectiveness. With the company controlling about 25 percent of a $40 billion online U.S. advertising market, up to $6 billion in annual revenue is at stake in the US alone. Google and Amazon also profit immensely from tracking you and selling your data.

The bottom line is that anyone who opts out is 60% less valuable than a regular customer, and that’s part of legal proceedings before the Federal Trade Commission and in 48 states. Apple, of course, has been taken to task for its practices in handling App Store operations, including who gets to put apps there, and other technical issues. They’re not saints, but that’s a separate issue from the Facebook issue.

The Forbes article likens Facebook’s operations to Ladies Night at a nightclub. On Ladies Night, clubs let women in for free expecting that they will attract men who will pay a cover, as well as spend money on the women and themselves. In a similar way, Facebook provides users with free services in the hope that advertisers will spend money on them. Facebook is like the owner-bartender who, for $10, will tell you everything he knows about a particular woman, including her relationship status and favorite drink.

I can’t speak for how a woman might feel after reading this, but anyone can feel some outrage about being put on display and sold. Yet at the same time, we’re looking for new and interesting products or services when we go online, and we may be open to new ideas when they’re presented to us. To me, that’s Facebook’s argument. You might view Apple as the guy who senses harassment and comes over to “protect” you.

To expand the transparency/privacy conversation, you have choices. You are able to use search engines and plug-ins that block unwanted ads while you browse the web and visit sites. Websites are fighting back by not allowing you access unless you unblock the ads on their site. You may not like the choices. You may not like sacrificing privacy for convenience or vice versa. But this is all part of the opt-in/opt-out battleground over who gets to profit from you.

If you have any questions about how to configure apps to meet your privacy or convenience needs, we can help. Call us – 973-433-6676 – or email us for an appointment to walk you through the process.

The Bluetooth Blues Will Make You See Red

Many people are unaware of all the places that Bluetooth connects your devices to. They’re more than just your phone to your headset. Apple brought this to light in their release of iOS 13, and one of their biggest rivals, Google, and Facebook may be the biggest culprits. Here’s what you need to know.

Of course, one of the reasons Apple has brought this up is that its new iOS 13 enables you to allow which applications can have Bluetooth access to your location. When you deny access, you’ll lose some functionality, but you have the option.

Why are Google, Facebook and others stalking you? It’s obvious: they can promote a product or service for someone to sell you. They’ve been doing it for a while. All they had to do was set up a network of Bluetooth devices that could detect your presence and deliver a popup notification on behalf of a retailer, product manufacturer, restaurant, etc. At the same time, apps such as those for ride sharing and banking also use Bluetooth, and you might not be able to get a ride or complete a transaction without it. But at least now you’ll know who’s tracking you, and you’ll know why because the app has to state its purpose for it.

The infuriating part is that before iOS 13, you never knew when you entered one of their tracking zones, and there was nothing you could do about it. The new OS changes that. It will tell you when an app wants to use Bluetooth to use your location data. You’ll then have the option to allow it or deny it. You’ll also have the option to deny an application access to your location automatically – until you decide to grant access. The process to deny access until you change your mind is straightforward: Go to Settings > Privacy > Bluetooth and toggle apps on or off.

Installing the latest software – iOS 13 for iPhone 6 and later and newer versions of iPad – is one example of why it’s critical to have all of your software up to date. Many people don’t realize that devices in homes and offices have operating-system software, which is known as firmware. This includes smart TVs and the massive copiers that you get from an equipment dealer. Google has many ways to track locations and user data, and you don’t know about them.

If you’re mad as hell about your privacy and don’t want to take invasions from unknown parties anymore, we can help. Call us – 973-433-6676 – or email us to walk you through a software update process or schedule an appointment to do it.

Convenience vs. Competition: What do You Think?

The Department of Justice is beginning an investigation of “big data” companies and their hold on your online activity. This is not intended to be a political rant, but we’d like to know your thoughts on convenience vs. competition.

Here’s the executive summary of the DOJ’s investigation:

  • DOJ is reviewing whether and how market-leading online platforms – Amazon, Apple, Facebook, Google and the rest of the usual suspects – have achieved market power and are engaging in practices that have reduced competition, stifled innovation, or otherwise harmed consumers.
  • The review will consider the widespread concerns about competition that consumers, businesses, and entrepreneurs have expressed about search, social media, and some retail services online.
  • The goal of the review is to assess the competitive conditions in the online marketplace in an objective and fair-minded manner and to ensure Americans have access to free markets in which companies compete on their merits to provide services that users want. 
  • If violations of law are identified, the DOJ will proceed appropriately to seek redress.

The investigation – or review – caught our attention because Amazon’s recent Prime Day blew projected numbers out of the water. Why not? When you want to buy a product, what do you usually do? You use Google to find the best price or fastest delivery, and you generally go to an Amazon website – where Amazon has your address and credit card info on file. Yes, it’s basically one click or just a few, and your shiny new object is on its way – sometimes with same-day delivery.

I admit, that’s how we sometimes shop for products and make our purchase decisions. I don’t know if the size of Google and Amazon limits my choices – or if they limit them significantly. I might never know if a local merchant has a better product, price or customer service because smaller businesses don’t have the numbers to show up in a Google search where I can easily see it. I don’t know if another search engine (not Bing, which is Microsoft) would give me better results because Google is ingrained in my mind. It’s even become a verb.

We recognize that technology and laws are complex fields, and we’ll all have different opinions about what makes a good law. But we’d like your thoughts on competition and convenience. If you would answer a few questions either by return email or by leaving comments for everyone to see, we can share what’s important to us:

  • Do you automatically use Google for product searches?
  • Would you use another search engine if it were readily available and gave the results you needed?
  • Do you go to websites only at the top of a Google search?
  • Do you click on the ads at the top of the search results?
  • Do you go to a product provider’s website directly before or after seeing Amazon results?
  • Do you really care that Google and Amazon are so big that they might be stifling competition and limiting your choices?

Thanks in advance for sharing your thoughts.

We’re Not Neutral on Net Neutrality

The intended repeal of net neutrality by the FCC will affect all of us. We’re likely to see the first changes as they affect the cost and availability of streamed programming and premium content; less is likely to cost more. We don’t know, yet, how it will affect search engines and your ability to find local businesses or anything else on the internet.

 Let’s start with a quick review of the history of the internet. It began as a level playing field for exchanging information worldwide, and it led to a communications revolution. It mightily disrupted the communications industry’s business models in every way imaginable.

Telephone calls, for example, are free or cost just pennies per minute to almost anywhere in the world. We can even make video calls for free. The internet, in this case, took away a revenue stream from traditional telephone carriers – and added a business capability for the cable TV industry.

Telephone service – or voice communication – became essentially a throw-in for telephone carriers and cable providers. Even if they were restricted in some markets in certain ways, at least one of each plus a satellite carrier could compete for your business. That led to service tiers and bundles of programming that customers were likely to buy.

Cable or satellite TV, in turn, was impacted by the internet. You don’t need a cable connection – or a satellite dish – to get all manner of visual content: TV shows, movies, etc. All you had to do was buy and install a good Wi-Fi system in your home and pay for fast enough internet service, and you could pick and choose what you wanted to watch.

This setup, which has continued until now, has allowed a number of smaller, innovative companies to get into the content business, either as producers or carriers. Companies that have innovated in some way, shape or form have become big-time players in the internet. Google, Amazon, Netflix, Microsoft and the like are relatively new companies that grew rapidly by exploiting technology.

But those companies are not ISPs (Internet Service Providers). The ISP business is essentially comprised of telephone and cable carriers, and that business has been commoditized. How many of us have switched ISPs at the drop of a hat to save a few bucks on basic services or add new features for very little additional cost? How many of us have simply dropped cable or satellite TV?

One of the factors that has contributed to our freedom of choice is Net Neutrality. Simply put, it is a governmental regulation that prohibits any ISP from blocking or slowing down virtually any content from virtually any provider. If you pay for 300-mbs internet service or 1-gigabit service, you can get it at that speed because the ISP can’t block it or slow it down.

That’s different from most cable or satellite TV services. Ever since their inception, they have sold blocks of programming in tiers. The more programming you want, the more you pay. If you want to pay less, you sacrifice choice – or you choose not to get high-definition service. That was OK because with Net Neutrality, you could get programming over the internet, and you could price your service more selectively.

The removal of Net Neutrality means that your internet service will now be bundled like cable/satellite TV programming. You want to stream Netflix or Amazon programming? There could be a premium charge for that. You want to stream sports or news programming? Your ISP can negotiate with the program providers to determine which ones they’ll carry and at what data speeds. No matter how it happens, your cost is likely to go up.

And there’s more. What about your favorite search engine? Why has Google fought so hard to become the dominant search engine? Why does Facebook keep trying to expand its user base? You know why: they can get more advertising dollars. Who doesn’t get any benefit from that now? Your ISP.

With the removal of Net Neutrality, search engines will need to strike deals with ISPs just like programmers have had to do, and then you’ll have to decide on an ISP based on a search engine you might want – as well as what websites you might want to access. Or, will some carriers show preferences for certain businesses? What’s to prevent one from favoring a shopping site over others in return for a higher access fee? What’s to prevent a consumer products company from being priced out of a website presence by bigger, well-financed conglomerates?

All of the innovation that we’ve seen? It’s going to be harder and harder for startups to get a foothold. We think the end of Net Neutrality will lead to higher prices and fewer choices for anything that we’ve become accustomed to finding on the internet. At least that will be the case until something new comes along. You can bet somebody’s hard at work developing the next alternative.

In the meantime, you can count on us to help you navigate the new world of the internet. We can help you select and install the networking equipment you’ll need to be compatible with your ISP and/or TV provider and make sure all interfaces and security systems function properly. Call us – 973-433-6676 – or email us with any questions you have as Net Neutrality events unfold.

Holiday Greetings and Connections

We all get holiday greetings – electronically. Sometimes, they’re cards available from any number of websites, and sometimes they’re emails and Facebook posts. I appreciate them all. But as much as I’m connected, I do miss a card in a stamped, hand-addressed envelope.

Technology has improved our lives in so many ways and made it so easy to stay connected. With email, it’s so easy to keep up with family and friends across the country and around the world. You don’t need to write a letter, address and stamp an envelope and take it to the post office. You just need to write it and click “send.” You can share pictures, videos, news items – anything that you can attach to a message. And why restrict yourself to sending it to one friend or family member? You can send it to everyone you know.

With Facebook and other social media, it’s even easier to reach out and have “conversations” of a sort with everyone you know and who-knows-how-many people you don’t know. You can stay connected with people with whom you have all levels of relationships, and it’s exciting.

But sometimes, it seems so impersonal, too. We’ve lost something by reducing relationships to keystrokes. It’s great to hear from somebody at holiday time, and it’s gratifying to get a bunch of birthday wishes on Facebook or LinkedIn. Any of those messages can restart a relationship.

Still, there’s nothing like talking to family and friends – to hear a voice over the telephone. We need to make more of an effort to pick up the phone, as the old telephone commercials implored us to reach out and touch someone.

But wait, technology can help us with that, too. The same company that invited you to reach out is one of many internet and cellular providers making it possible for you to use Skype, Facetime and other programs to see and talk to people anywhere in the world.

Yes, that hand-addressed card is really great. The ability to talk to people and see their faces is even better. And in the world of business, seeing a face and hearing a voice can convey so much more than an exchange of keystrokes.

Let’s resolve to use our connectivity to strengthen our connections. And if you need some help in setting up your computers or devices to run any videoconferencing applications, give us a call – 973-433-6676 – and we’ll walk through it – and test it out. And of course, you can email to set up an appointment.