When I first started Kinzoo, my initial business plan relied on two assumptions: first, that kids would continue to be a fast-growing segment of internet users, and second, that privacy would become a bigger concern for all of us. While the first assumption is pretty easy to see in action—especially with the way the pandemic shifted our lives online, the second has been a bit of a slower burn. However, a new privacy-focused feud between two tech giants might be kicking it into high gear. It's a heavyweight match-up for the ages: in one corner, Apple CEO Tim Cook. In the other, Facebook CEO Mark Zuckerberg.
And the issue that has them at loggerheads? Well, that depends on which one you ask. For a while now, Apple has been hanging its hat on the issue of privacy. They've released privacy-focused updates and ad campaigns—and they've even drawn the ire of law enforcement for refusing to unlock users' iPhones in the course of investigations. Their latest update shows a pop-up to all iPhone users asking whether they'll permit companies to track them across different apps.
Mark Zuckerberg is not pleased, which isn't surprising given the rate that Facebook vacuums up user data across a variety of apps. The way he sees it, this new update will hurt small businesses who rely on Facebook's cache of data to get their ads in front of the right eyeballs. According to Zuckerberg, tracking is what ensures you continued free access to the internet. And early indications are not good for Facebook either. Flurry Analytics collected data across a sample of 2.5 million devices—and only 4% of users have opted into tracking.
This clash of the tech titans really comes down to two competing visions for the future of the internet and two different business models for making money. On the one hand, Facebook offers a "free" service to all its users—and makes money by collecting and leveraging our data. Businesses (both big and small) pay a pretty penny to advertise on their platform because they can target their audience with unparalleled accuracy. So while Facebook users might have free access to the platform, they pay in other ways—namely with their personal information. And they're not just tracking us on their own platform, they're tracking us on Spotify, on the New York Times website—and many, many more. This tracking is extremely pervasive and most of us don't really understand the extent of it. But Apple wants to put a spotlight on it.
They also want users to pay a premium (with real money, not data) for its hardware and platforms—and for privacy. That's where their business model differs. Tim Cook has long suggested that Mark Zuckerberg should stop tracking people on apps and websites outside of their own. But now, with the new update, Cook is bypassing Zuckerberg altogether and letting iPhone users decide for themselves.
I believe that the new iPhone update is a step forward for transparency. It's difficult to know the full extent of the tracking that happens all day every day, and this is a move in the right direction. After all, this is our information and we should have a say in what happens to it. Facebook doesn't seem to want you to know exactly where and how they track you. Maybe I'm old-fashioned, but I think we should all think twice about a business model that relies on a lack of transparency.
But while I might be inclined to side with Apple on this particular issue, it's worth noting that both companies are embroiled in anti-trust investigations. Sure, Facebook makes their money trading in our data, but some argue that the Apple App Store is an unfair monopoly that takes advantage of app developers. So while Apple may want individuals to have more choice over what happens to their data, it's easy for them to take a bold stance on an issue that doesn't really affect their bottom line.
Every company faces tough decisions and it's unfortunate that you see so many prioritize profits over everything else. At Kinzoo, there are decisions we could make and business models we could pursue that would make us more money and help is grow faster, but we decided from the outset to do what was right for our users—and for the industry as a whole.
A deeper dive
Here are a few helpful resources in case you want to really dig into today's topic:
Just what is at stake for Facebook in this privacy update? Well according to The Guardian, Apple's new operating system "threatens to kneecap Facebook’s business model." And according to the same article Facebook's business model is 99% advertising!
If you're interested in the finer details of the feud between the two CEOs, the New York Times offers a brief historyof how the relationship soured.
TL;DR
Too long; didn't read. It shouldn't be a full-time job to keep up on industry news, so here is a mercifully quick summary of some other notable developments:
Facebook offers advertisers the ability to target people based on very specific criteria. They have a policy against advertising alcohol or tobacco to kids, but according to research by lobby group Reset Australia, advertisers can target kids under 18 who have shown interest in alcohol, smoking, vaping, gambling, extreme weight loss, fast foods and online dating services. The lobby group created a fake page and ultimately got approval to show kids "ads mentioning winning prizes, or cocktails or asking teens if they were 'summer ready.'"
At Kinzoo, we have three product pillars to guide us. Every feature we build helps kids connect with loves ones, flex their creative muscles or cultivate a new passion. Honestly, it's incredible what children are capable of, especially when it comes to their creativity. I loved how this article from the Washington Post looked at creativity from a wide perspective and gave parents tips for how they can encourage creative thinking in their children.
And lastly
Here are a few more pieces of original writing from me and my team—just in case you're keen for more:
It's actually quite difficult to understand the scale of the data collection that happens every day, and I suspect that's by design. But, in an effort to help make heads or tails of it, I wrote an article that puts a real dollar amount on your data. If you'd like to learn just how much Facebook could be profiting from your information, check it out.
Any parent knows the feeling: you're proud of your kids and you just want to share that pride. But if you're posting about your kids on social media, there are a few safety considerations to be aware of. My team put together a guide to smart sharenting with a few helpful tips.
Okay, that's it from me until next time. If you enjoyed this newsletter, and know of another parent who would as well, please feel free to forward it along.