What Would Happens To Meta and Google If Privacy Invasion Were Criminalized?
Apple's privacy push could cost Meta $10 billion in lost 2022 advertising revenue — and that news alone erased $250 billion in Meta's value, notes long-time Slashdot reader theodp. But this leads them to a thought experiment: What would happen to Meta's and Google's business models if the privacy invasion behind the companies' lucrative advertising model were actually criminalized? While there would likely still be the same massive demand for the free services provided by Meta and Google, being unable to target customers of interest to advertisers based on snooped behaviors and demographics seems likely to throw the duopoly's lucrative cost-per-click (CPC) and cost-per-thousand-impressions (CPM) advertising model that powers these free services into disarray. So what might the end game look like for Facebook and Google in a Web world where privacy was enforced by law? One imagines the pair could try to incur the additional cost of delivering many times more untargeted impressions in an effort to reach the same number of behavior and demographic-targeted impressions desired by advertisers, assuming they could get that to work and gain advertisers' trust in the new model. But one wonders if advertisers might start diverting more ad dollars away from Meta and Google to other sources such as media providers, whose varied content naturally segments audiences and could deliver greater assurance to advertisers that more relevant viewers are being reached. Might Meta and Google pivot to become syndicators of media content and be forced to share more of the advertising loot? And what about the Metaverse — could Meta-sponsored events and interest groups hosted there provide Meta with opportunities to naturally segment its massive user base into areas that could facilitate targeting audiences relevant to advertisers even without privacy invasion? Finally — if worse comes to worst — would users actually pay to use Meta's and Google's services if the new advertising model failed to deliver sufficient revenue to keep services free?
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