Will Facebook’s updated terms and data policy affect brands in India?

  • Rhea
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  • Published Date : 9 May , 2018
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  • Updated Date : 13 April , 2019
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    • 3 min read

After the Cambridge Analytica controversy, Facebook has taken several important steps to tighten their data security. The multi-billion dollar social media platform recently announced a new set of amendments to their data policies. The question that has arisen is whether or not the recent changes in policies will affect brands and their advertising strategies. However, most of the new terms involve reiterating existing ones, which is unlikely to affect brands’ marketing strategies. Here are some of the most important announcements Facebook has made about their revised data policy and the impact it is likely to have on brands.

Revoking permission to dormant apps

One of the most significant policy changes Facebook is making is to revoke access to user information for third-party apps that haven’t been used by them in over three months. There will also be a more visible button on the news feed which will allow users to restrict access to certain apps by themselves.

Impact: This change will only improve privacy and safety for users with zero impact on brands and advertising. Since apps that users consistently engage with will not be affected, brands will still have access to their main target audience.

Transparency about data-sharing

Facebook has reiterated their commitment to protecting user data by tightening their data-sharing policies. They will no longer sell private user information or allow partners to use this information in ways that violate their privacy policy.

Impact: This new policy is a step in the right direction towards better security for users. The improved privacy settings will help users be more confident about actively participating on the platform. For brands, this is a positive change as it means that their consumer base on Facebook will remain largely the same.

Closing third-party data providers

Earlier, through a feature called Partner Categories, advertisers on Facebook could target consumers based on very personal insights provided by third-party data agencies. But now after details of these providers exploiting private user data has come out in the open, Facebook is shutting down Partner Categories.

Impact: The Partner Categories feature allowed brands who lacked an existing customer database to find a target audience. While brands can continue using Facebook’s database as well as their own customer data through the Customs Audience tool, the exact impact of this change is yet to be seen.

Greater control over ads

Users will now be able to decide which ads they want to see appearing on their newsfeed. This is also an important step towards personalisation of a user’s newsfeed.

Impact: This feature has always existed on Facebook, the only difference now is that it will be more prominent. As long as brands are using the right targeting, they will be unaffected by this change as users will be interested in their ads. Brands with inaccurate targeting, however, are very likely to be negatively impacted.

Exact reach not shown for custom audience

 Advertisers who upload their existing database onto the custom audience tool will not be able to see the exact reach of their targeting. This is to prevent advertisers from being able to see exactly how many of their customers are on Facebook.

Impact: While advertisers will not be able to see the exact reach when using the Custom Audience tool, they will still know how many customers were in their database. This will give them a reasonably accurate idea of how big their reach is.

Facebook still rules the digital marketing landscape

The revised data policies are unlikely to have any significant impact on the way people are using the platform. Currently, India is Facebook’s biggest market with 240 mn monthly active users, overtaking even the US which has 230 mn. Far from decreasing anytime soon, these numbers are only going to grow. By 2020, there will be around 250 million new smartphone users and 100 million new internet users. A significant portion of these users will also start using Facebook.

For brands, Facebook is and will continue to be one of the most effective ways to reach out to their consumers. Despite the new terms and conditions, the number of Facebook users in India has not shown any significant decline, nor is it expected to. With their customers still active on Facebook, brands need to maintain a strong presence on this platform in order to build brand awareness and encourage customer loyalty. Advanced social media analytics tools, can also provide detailed targeting for brands. As the number of users will only continue to grow from here, Facebook remains one of the most important platforms for brands to engage with India’s next billion internet users.

As our Digital Marketing Industry Insights for India 2018 also points out, Facebook is one of the best-performing platforms to help brands meet their business goals. Through Facebook, we have even been able to generate a 190 crore revenue for Casagrand. The recent privacy changes Facebook has implemented is a positive step towards protecting a user’s personal information online. Brands in India are unlikely to face any negative impact over this decision as the number of Facebook users are only going to grow from here.




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