You can compare the pop-up language Apple shows for an app like FB and the one they show for their own personalized ads to see what I'm talking about. They've also run misleading ads and have made comments that confuse people about what's actually going on.
I'm no apologist for ads, but Ben Thompson is right to point out that this hurts small companies that rely on these targeted ads in order to exist a lot more than it hurts large players like FB.
For example - a grocery store doesn't want to manage 'first party' user data to track what you purchase (and you probably don't want them to), they're bad at that and more likely to do it poorly. They'd rather rely on an ad company they can use instead. This applies to most small businesses that rely on targeted advertising to get their business in front of users that would want it. In Apple's model Amazon doesn't need to say they track you because all purchase data happens on Amazon, but FB does because others use FB to target third party ads. The data doesn't leave FB though so a reasonable person could argue why is this worse?
My personal opinion is that we'd be better off in an equilibrium where these ad driven models are not viable because the models that would replace them would be better on net with incentives more aligned between user and product.
There is a problem here with how user data is handled in some cases, but Apple is also being at best misleading about the issue in a way that benefits themselves and reasonable people could think they're doing the wrong thing.
> The data doesn't leave FB though so a reasonable person could argue why is this worse?
Because the user has a relationship with the grocery store application and as far as they are aware, only interacting with the grocery store application. They aren’t given the knowledge or opportunity to decide whether to send their data to Facebook or not. All Apple are requiring is that the user be given that knowledge and opportunity.
You can compare the pop-up language Apple shows for an app like FB and the one they show for their own personalized ads to see what I'm talking about. They've also run misleading ads and have made comments that confuse people about what's actually going on.
I'm no apologist for ads, but Ben Thompson is right to point out that this hurts small companies that rely on these targeted ads in order to exist a lot more than it hurts large players like FB.
For example - a grocery store doesn't want to manage 'first party' user data to track what you purchase (and you probably don't want them to), they're bad at that and more likely to do it poorly. They'd rather rely on an ad company they can use instead. This applies to most small businesses that rely on targeted advertising to get their business in front of users that would want it. In Apple's model Amazon doesn't need to say they track you because all purchase data happens on Amazon, but FB does because others use FB to target third party ads. The data doesn't leave FB though so a reasonable person could argue why is this worse?
My personal opinion is that we'd be better off in an equilibrium where these ad driven models are not viable because the models that would replace them would be better on net with incentives more aligned between user and product.
There is a problem here with how user data is handled in some cases, but Apple is also being at best misleading about the issue in a way that benefits themselves and reasonable people could think they're doing the wrong thing.