WhatsApp Acquisition | Facebook's New Baby | Users Beware!

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Ultimate Guide to Social Media Marketing

Facebook's WhatsApp Acquisition


WhatsApp Acquisition by Facebook

Facebook made a bold move last week in the realm of Social Media with the WhatsApp acquisition.

To the tune of $19 billion, Facebook has completed its purchase of WhatsApp, the popular mobile messaging service.

Facebook's acquisition of WhatsApp planted roots in 2014 and is now coming to fruition. The move by Facebook was the top acquisition in 2014 and is one of the biggest tech buys in history.

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Show Me the Money

WhatsApp previously raked in approximately $20 million a year with low-cost subscription-based services around the world. It also offered free services. However, that hardly justified the big-dollar buyout. So what’s the catch in the WhatsApp acquisition?

Facebook intends to use the information in WhatsApp’s database to create more tailored ads for Facebook users. Facebook is also rumored to be planning a roll out of advertising services in WhatsApp, a previously ad-free platform. But that's not all.

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Goodbye, Privacy Policy!

Wolf in Sheep's ClothingFacebook has been trying to get its hot little hands on the millions upon millions of phone numbers in the WhatsApp database. And now it might just gain that coveted access.

WhatsApp has been big on security. The app has been encrypted from end-to-end, meaning the company could never see the content shared by its users across the globe. Those phone numbers, however, may be up for grabs. Also on the table are analytics. The devices and operating systems used by WhatsApp users are now in Facebook's possession.

WhatsApp's privacy policy of 2009 promises to protect users' information. In recent years, however, those terms of service have been grossly re-written to allow WhatsApp to release previously protected data to Facebook.

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Broken Trust

Recent polls suggest 99 percent of users don't trust social media with personal details or contact information. People are hesitant to allow their phone usage habits to be fodder for business ventures, corporate contests, or marketing campaigns.

Furthermore, those concerns spread worldwide and are not limited to the good ole' U.S. of A.

Nonetheless, scores of users have already exchanged their phone numbers for the use of the free or low-cost messaging service. Facebook now owns that and other information.

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In Whose Best Interest?

GluttonyWhile Facebook claims it doesn't want WhatsApp users to experience spam-like messages, there are whispers that businesses will be allowed to send targeted marketing messages to some users. This strong arm tactic is in stark contrast to WhatsApp's founding principles.

The social network giant also intends to overlap user information between WhatsApp and Facebook to determine shared users. The goal, claims Facebook, is to create more tailored user experiences.

Facebook's gluttony for data contradicts its claims to enhance user experience.

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Summing it Up

Facebook is definitely establishing itself as the bully on the social network playground. Although the social network king isn't afraid to shell out big bucks to absorb other social networks, it doesn't seem to be able to put its money where its mouth is regarding privacy rights for users. Will the recent acquisition buy Facebook more fans, or invoke fury?

You decide.

Ultimate Guide to Social Media Marketing


Need help with your digital marketing? BALLEN BRANDS is a DIGITAL MARKETING COMPANY specializing in SEARCH AND SOCIAL Helping BUSINESS PROFESSIONALS rise ABOVE the NOISE. Give us a call at 702-917-0755 or email team@ballenbrands.com.

Posted by

Lori Ballen

Digital Marketing Strategist
Ballen Brands - Helping Business Professionals Rise Above the Noise.

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Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Lori, it will be interesting to see who will be pushing the "Like" button on this one.

Aug 29, 2016 10:00 AM #1
Laura Allen, Lake Tahoe - Truckee Real Estate for Sale TahoeLauraRealEstate.com
Coldwell Banker, Tahoe City, CA (530) 414-1260 - Tahoe City, CA
Tahoe Real Estate Agent Helping Buyers and Sellers

Lori Ballen - The face of social media, apps, phones, and all things tech are constantly changing.  It will be interesting to see what happens now that the acquisition is over!  Great summary and update!

Aug 29, 2016 11:06 AM #2
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I have been using whatsapp a lot. Thank you for the information.

Aug 30, 2016 02:36 AM #3
Denise Hamlin, Broker/Owner
Cardinal Realty ~ 319-400-0268 - Iowa City, IA
Helping Happy Clients Make Smart Choices

I think for most of us in this forum at least, our information is out there anyway. I'm not sure that What's App's privacy policy will alter anything for me. I do think you're right for the general public though. They may think of What's App as a "safe zone" and it's not. Like it or not that changed when it became part of the FB family. 

Aug 30, 2016 03:50 AM #4
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Lori Ballen

Digital Marketing Strategist
Find Out what Your Home is Worth

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