• Skip to primary navigation
  • Skip to main content
  • Skip to footer
  • 020 3330 7010
  • marketing@allresponsemedia.com
  • E-mail
  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube
ARM logo

All Response Media

  • Home
  • About ARM
    • About ARM
    • Meet the Team
  • Our Services
    • TV Advertising
    • Digital
      • PPC
      • SEO
      • CRO
      • Social Media
      • Programmatic
    • Offline Media
      • TV Advertising
      • Press
      • Radio
      • Inserts
      • Door to Door Advertising
      • Outdoor
    • Analytics
    • ARMalytics®
  • Success Stories
    • Client Success Stories
      • Visit Orlando
      • GLL
      • DeadHappy
      • Freddies Flowers
    • Our Work With Startups
  • Content Hub
  • Careers
  • Contact Us
You are here: Home / Digital / Could this change Facebook forever?

Could this change Facebook forever?

22nd March 2019 by Dan Morley

Earlier last week Facebook’s CEO announced major changes to how it wants to operate – likely in an attempt to distance itself from recent data breaches – away from public content to a ‘privacy focused vision’. It also announced a move to bring its platforms closer together; WhatsApp, Instagram, Messenger and MSQRD to have more of a ‘one stop shop’ something many believe see Facebook look to replicate WeChat in China.

Replicating WeChat’s approach goes further – in China, WeChat is used by some 1 billion users monthly and is a one-stop shop with end-to-end encryption. It consists of a gaming platform, a bank, chat functionality, food delivery and more.  70% of WeChat revenue is driven by value-added services such as VIP status, stickers, fees on money transfers and purchases – comparing this to Facebook where currently 80% of revenue comes from ads. Two very different revenue models.

With Facebook looking to shed its privacy and data issues, move to full end-to-end encryption and amalgamate features adopting the approach of WeChat to weave itself into our day to day lives as well as encapsulate services we all use daily – could this be a major step change in how Facebook does business?

No timelines were given in the announcement of ‘change is coming’ but with Facebook struggling to attract the younger demographic and dropping a million EU users in Q4 2018, it needs to make some changes.

What does this mean for advertisers?

At the moment it’s too early to tell. Currently, Facebook delivers a plethora of targeting methods aligned to data that it holds and stores on its users. This includes who we are as well as what we like. It is this data that has seen it rise to dominance and see, for some advertisers, it become their leading channel for their media plans.

If ads became less prominent, arguably the auction ‘heats up’ and advertisers are forced to pay more for the same audience simply because these users are being exposed to fewer ads.

But the ‘value add’ aspect becomes an interesting one, companies integrate their services directly with WeChat to offer services – if you could order your Uber directly through Facebook, then would Uber need to pay for advertising, or simply allow Facebook to take a small fee on each ride booked?

The approach moves to tie companies directly into the platform – making the platform harder to break away from for both companies and end users, as it will facilitate all of your day-to-day, making the shift from an advertising-heavy platform, to a service one. Ultimately, a service one that then has even more transnational and behavioural data than it currently does.

Subscribe For More

Newsletter Signup

Footer

ARM logo

The Leading Performance Media Agency

Building businesses and brands by providing clients with an Unfair Competitive Advantage.
ARMalytics®

Get In Touch

London: Sutton Yard, 65 Goswell Road, EC1V 7EN
Phone: +44 (0) 20 3330 7000

Leeds: Marshalls Mill, Marshall Street, LS11 9YJ
Phone: +44 (0) 20 3330 8050

Amsterdam: Koivistokade 3, 1013 AC
Phone: +31 6 3761 9020

marketing@allresponsemedia.com

Privacy Policy | Cookie Policy | Modern Slavery Policy

  • E-mail
  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube

Our Newsletter

Subscribe to receive exclusive media insights straight to your inbox. We respect your privacy.

Newsletter Signup

We are using cookies to give you the best experience on our website.

You can find out more about which cookies we are using or switch them off in .

ARM logo
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

These cookies are essential to provide you with services available through our website and to enable you to use certain features of our website.

If you disable this cookie, we cannot provide you certain services on our website and we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.

Analytical and Performance Cookies

These cookies are used to collect information to analyse the traffic to our website and how visitors are using our website.

For example, these cookies may track things such as how long you spend on the website or the pages you visit which helps us to understand how we can improve our website for you.

The information collected through these tracking and performance cookies do not identify any individual visitor.

Please enable Strictly Necessary Cookies first so that we can save your preferences!

Advertising and Targeting Cookies

These cookies are used to show advertising that is likely to be of interest to you based on your browsing habits.

These cookies, as served by our content and/or advertising providers, may combine information they collected from our website with other information they have independently collected relating to your web browser's activities across their network of websites.

If you choose to remove or disable these targeting or advertising cookies, you will still see adverts but they may not be relevant to you.

Please enable Strictly Necessary Cookies first so that we can save your preferences!

Cookie Policy

More information about our Privacy Policy and Cookie Policy