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		<title>Threads: One year later, has it been a success?</title>
		<link>https://smartframe.io/blog/threads-one-year-later-has-it-been-a-success/</link>
		
		<dc:creator><![CDATA[Matt Golowczynski]]></dc:creator>
		<pubDate>Wed, 31 Jul 2024 14:39:52 +0000</pubDate>
				<category><![CDATA[News & Features]]></category>
		<category><![CDATA[Meta]]></category>
		<category><![CDATA[social media]]></category>
		<category><![CDATA[threads]]></category>
		<guid isPermaLink="false">https://smartframe.io/?p=118133</guid>

					<description><![CDATA[<p>As Threads blows out its first birthday candle, we look at whether [&#8230;]</p>
<p>The post <a href="https://smartframe.io/blog/threads-one-year-later-has-it-been-a-success/">Threads: One year later, has it been a success?</a> appeared first on <a href="https://smartframe.io">SmartFrame</a>.</p>
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									<p class="blog-stand-first">As Threads blows out its first birthday candle, we look at whether it has managed to attract users and whether brands are willing to reach them on the platform</p>
<p>Launched in July 2023, Meta&#8217;s Threads was widely seen as a new home for an audience disillusioned with Elon Musk&#8217;s takeover of X, which at that point was still known as Twitter.</p>
<p>Indeed, rivalry between the two platforms <a href="https://www.bbc.co.uk/news/world-us-canada-66129215" target="_blank" rel="noopener">sparked the threat of legal action from Musk</a>, although an actual lawsuit doesn&#8217;t appear to have materialized since then.</p>
<p>Amid huge publicity, the Threads app was <a href="https://www.theguardian.com/technology/2023/dec/14/threads-launches-europe-meta-twitter" target="_blank" rel="noopener">made available in over 100 countries at launch</a>. In just 16 hours, it became the fastest-downloaded app of all time, netting <a href="https://www.nytimes.com/2023/07/06/technology/threads-downloads-twitter.html" target="_blank" rel="noopener">30 million downloads</a>. Four-and-a-half days later, it had crossed the 100-million-user mark.</p>
<p>But one year later, where does it stand? Has it ended up being the refuge for disgruntled X users that many believed it would be? Or has the huge initial adoption been followed by indifference?</p>
<h4>A growing audience – but an uncertain identity</h4>
<p>Following <a href="https://www.exchangewire.com/blog/2024/02/05/meta-amazon-report-surging-profits-threads-users-rise-to-130-million-youtube-remains-online-video-leader/" target="_blank" rel="noopener">an announcement</a> earlier in the year that Threads had managed to attract over 130 million users, Mark Zuckerberg confirmed earlier this month that the platform now boasted <a href="https://www.threads.net/@zuck/post/C89oeSORn81" target="_blank" rel="noopener">175 million monthly users</a>.</p>
<p>It may make the <a href="https://www.theverge.com/2023/7/26/23809080/mark-zuckerberg-meta-q2-earnings-threads-one-billion-users" target="_blank" rel="noopener">1 billion figure Zuckerberg hopes to hit</a> seem like something that will take time yet, but it&#8217;s a significant achievement nonetheless.</p>
<p>A lot of this success was undoubtedly due to the marketing targeted toward existing Instagram users within the Instagram app, where it continues to be heavily promoted. Indeed, having an Instagram account continues to be a prerequisite for new users.</p>
<p>However, acquiring users is only part of Meta&#8217;s overall challenge; motivating them to create content specifically for Threads is another.</p>
<p><script async src="https://static.smartframe.io/embed.js"></script></p>
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<p>As a text-first platform, Threads currently resembles X more than Instagram, with conversation rather than media sharing being the focus.</p>
<p>But the ease with which Instagram users can share the same content across both Instagram and Threads, facilitated by a simple yes/no toggle, may prevent Threads from developing its own unique identity.</p>
<p>This, in turn, may make it more difficult for people to understand its purpose. Why go to Threads if the same content is available on a more established platform?</p>
<p>Developing a unique identity for Threads is also important for brands, specifically those wanting to understand whether it&#8217;s worth their time and effort to cultivate a following and develop platform-specific content. After all, many of these will already be heavily invested in other platforms, ones where they may already have established audiences.</p>
<h4>Are brands weaving their way into Threads?</h4>
<p>Given that Threads is only a year old, it&#8217;s not surprising that many brands have smaller followings here compared to other platforms.</p>
<p>Nevertheless, some of those that have embraced the platform have quickly managed to build substantial audiences.</p>
<p>For instance, the National Geographic account, which posts almost daily, has 13.2 million followers at the time of writing.</p>
<p>Meanwhile, sports giant Nike has attracted 11.6 million followers, while Marvel Entertainment boasts 8.7 million followers. The NBA (below) is not far behind, having recently surpassed 8.6 million followers.</p>
<center>
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<p><script async src="https://www.threads.net/embed.js"></script></p>
<p>As is the case on other social platforms, however, it&#8217;s individuals that grab all the top spots, with Neymar Jr (17.3 million), Selena Gomez (16.2 million), and Kylie Jenner (14.2 million) heading the list.</p>
<h4>Are advertisers interested in Threads?</h4>
<p>Meta&#8217;s ability to attract users and brands to Threads also determines whether advertisers would be willing to add it to their media mix.</p>
<p>Mark Zuckerberg did initially state that Meta would only consider monetization <a href="https://www.threads.net/@zuck/post/CuW5-eWL34x?igshid=MzRlODBiNWFlZA%3D%3D" target="_blank" rel="noopener">once it was on a clear path to this 1 billion figure</a>. Earlier this year, however, it was reported that advertisers <a href="https://digiday.com/marketing/metas-threads-expected-to-have-ads-this-year/" target="_blank" rel="noopener">would be able to jump in in the second half of the year</a>.</p>
<p>If Meta does offer this, advertisers would need to have a better understanding of the platform and its audience beyond monthly figures.</p>
<p><a href="https://digiday.com/marketing/advertisers-dont-seem-too-tempted-by-meta-putting-ads-on-threads/" target="_blank" rel="noopener">Exactly who these users are and what they&#8217;re interested in</a> is a primary consideration. How often these 175 million monthly users are actually engaging with the platform is another.</p>
<p><script async src="https://static.smartframe.io/embed.js"></script></p>
<p>&nbsp;</p>
<p><script async src="https://static.smartframe.io/embed.js"></script><smartframe-embed customer-id="7d0b78d6f830c45ae5fcb6734143ff0d" image-id="adobestock_649508496_1722246536605" theme="blog-new" style="width: 100%; display: inline-flex; aspect-ratio: 7375/4919; max-width: 7375px;"></smartframe-embed></p>
<p>X is <a href="https://mashable.com/article/twitter-x-daily-active-users-drop-under-elon-musk" target="_blank" rel="noopener">thought to have between 200-250 million daily users</a>, with the <a href="https://blog.x.com/en_us/topics/company/2023/one-year-in" target="_blank" rel="noopener">average user spending over 32 minutes per day on the platform</a>.</p>
<p>Meanwhile, over on Threads, the 14 minutes per day users were reported to have been spending in the month of its launch was said to have <a href="https://www.similarweb.com/blog/insights/social-media-news/threads-first-month/" target="_blank" rel="noopener">dropped to just three minutes per day one month later</a>.</p>
<p>This was, of course, well before it had amassed its current audience, so it&#8217;s possible this is no longer the case – for better or worse.</p>
<h4>What happens next?</h4>
<p>A year isn&#8217;t a long time for any social network. Facebook, for example, has been around for 20 years, while Instagram will celebrate its 14th birthday later this year, and both have been subject to a multitude of changes since they each celebrated their first birthday.</p>
<p>Many familiar social media platform features, such as sharing, reposting, commenting, and so on, are already in place on Threads, but regular updates continue to shape it, with small differences in functionality continuing to give it more of its own flavor.</p>
<p>What happens next depends on several factors, both inside and outside of Meta&#8217;s control.</p>
<p>One of these is Threads&#8217; ability to recommend interesting accounts to follow.</p>
<p>While Meta makes it easy to follow people a user already follows on Instagram, it&#8217;s unlikely that the average user will want to follow the exact same accounts on both platforms.</p>
<p>There are many reasons for this, from the different nature of each platform to the ways audiences are encouraged to use each one, and even the level of anonymity that a user may desire on one but not the other.</p>
<p>Related to this is the way in which Meta deals with political content. While posting political content on Threads is not restricted per se, Meta is clearly cautious about Threads becoming the kind of place that gave X – or more specifically, Twitter, when it was still Twitter – a bad name.</p>
<p><script async src="https://static.smartframe.io/embed.js"></script><smartframe-embed customer-id="7d0b78d6f830c45ae5fcb6734143ff0d" image-id="adobestock_433610566_1722247142838" theme="blog-new" style="width: 100%; display: inline-flex; aspect-ratio: 4320/2880; max-width: 4320px;"></smartframe-embed></p>
<p>Meta has stated that it wants Instagram and Threads to be &#8220;a great experience for everyone&#8221;. For this reason, it <a href="https://www.theinformation.com/articles/meta-employees-debate-merits-of-threads-no-politics-policy" target="_blank" rel="noopener">does not recommend content about politics</a> from accounts that aren&#8217;t being followed by the user on default settings.</p>
<p>Adam Mosseri, Head of Instagram, has said that &#8220;showing you political takes from people you don&#8217;t follow &#8230; [is] fundamentally going to create more problems than it solves.&#8221;</p>
<p>So it could be that, despite the popularity of political and news-based accounts on Threads, the platform might succeed in fostering an audience with fewer reasons to engage in arguments.</p>
<p>And that, in turn, should help to give advertisers confidence their brand will be seen in a positive, brand-appropriate environment.</p>
<p>Another thing that would be relevant to prospective advertisers, but for different reasons, is the ongoing saga between the US government and TikTok.</p>
<p>With a ban on TikTok on government devices already in force; a <a href="https://edition.cnn.com/2024/04/23/tech/congress-tiktok-ban-what-next/index.html" target="_blank" rel="noopener">wider ban supported by both the current administration</a> and <a href="https://www.independent.co.uk/tech/trump-tiktok-ban-facebook-b2581321.html" target="_blank" rel="noopener">Donald Trump</a>; and TikTok&#8217;s parent company ByteDance <a href="https://www.bbc.co.uk/news/articles/c289n8m4j19o" target="_blank" rel="noopener">making it clear it has no intention to sell the app</a> (which would allow it to continue to operate in the US), it may be that brands currently targeting TikTok users are mulling over the possibility of adding Threads to their mix when the opportunity becomes available. That said, it&#8217;s unclear how much overlap there may be between the two audiences.</p>
<p>In any case, the next couple of years are likely to be vital ones for the platform. In this time, Threads should establish its identity and give both its existing audience and brands a better idea of what it&#8217;s for and who it&#8217;s for. Assuming it can continue to attract new users – and crucially, ones willing to engage and create content with some frequency – it may well succeed as a viable and vibrant alternative to X.</p>								</div>
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		<p>The post <a href="https://smartframe.io/blog/threads-one-year-later-has-it-been-a-success/">Threads: One year later, has it been a success?</a> appeared first on <a href="https://smartframe.io">SmartFrame</a>.</p>
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		<title>2023 tech recap: The stories that defined the year</title>
		<link>https://smartframe.io/blog/2023-tech-recap-the-stories-that-stood-out/</link>
		
		<dc:creator><![CDATA[Liam Machin]]></dc:creator>
		<pubDate>Tue, 02 Jan 2024 09:01:31 +0000</pubDate>
				<category><![CDATA[News & Features]]></category>
		<category><![CDATA[artificial intelligence]]></category>
		<category><![CDATA[CAI]]></category>
		<category><![CDATA[Google]]></category>
		<category><![CDATA[jurgen klopp]]></category>
		<category><![CDATA[Meta]]></category>
		<category><![CDATA[Nikon]]></category>
		<category><![CDATA[Sony]]></category>
		<guid isPermaLink="false">https://smartframe.io/?p=82698</guid>

					<description><![CDATA[<p>Another year goes by, and the tech sector has served up a [&#8230;]</p>
<p>The post <a href="https://smartframe.io/blog/2023-tech-recap-the-stories-that-stood-out/">2023 tech recap: The stories that defined the year</a> appeared first on <a href="https://smartframe.io">SmartFrame</a>.</p>
]]></description>
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									<p class="blog-stand-first">Another year goes by, and the tech sector has served up a smorgasbord of innovation, controversy, and everything in between.</p>
<p>From grappling with deepfakes so real they fooled stock markets to the continued development of photographer-first technologies, we’ve seen it all.</p>
<p>Here are our top standout stories and most interesting developments that could impact a number of sectors next year.</p>
<h4>Tech for good</h4>
<p>Starting with <a href="https://contentauthenticity.org/blog/leica-launches-worlds-first-camera-with-content-credentials" target="_blank" rel="noopener">Leica&#8217;s M11-P camera</a>, a groundbreaking piece of tech that has the honor of being the world&#8217;s first cameras to be equipped with <a href="https://smartframe.io/blog/content-credentials-everything-you-need-to-know/" rel="noopener">Content Credentials</a> technology as standard.</p>
<p>On the horizon, the upcoming <a href="https://www.dpreview.com/news/7271416294/sony-announces-a9-iii-world-s-first-full-frame-global-shutter-camera" target="_blank" rel="noopener">Sony A9 III</a> model will also feature this, and the company disclosed plans to extend the same support to select older models, namely the Sony A1 and A7S III, through a firmware update.</p>
<p>Elsewhere, Nikon showcased a preview of its Z9 camera with integrated Content Credentials during <a href="https://blog.adobe.com/en/publish/2023/10/10/new-content-credentials-icon-transparency" target="_blank" rel="noopener">this year&#8217;s Adobe MAX event</a>.</p>
<p>With an increasing number of fake images being released into the digital ecosystem each year, seeing hardware providers supporting tools that increase transparency and provenance for online content is highly encouraging.</p>
<p>This could be a game-changer for both copyright protection and online trust as it empowers the original creator(s) and makes it harder to spread misinformation.</p>
<p>Speaking of big movements, we couldn’t help but applaud Andy Parsons, Senior Director at the <a href="https://smartframe.io/blog/content-authenticity-initiative-what-you-need-to-know/" rel="noopener">Content Authenticity Initiative</a>, on putting UK Prime Minister Rishi Sunak and Elon Musk on the spot about the growing need to distinguish and label AI-generated media online.</p>
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<p dir="ltr" lang="en">Adobe just won a business project from Elon by asking an interesting question on Cryptographically Signed Media. <a href="https://t.co/WPxDnFAesE">pic.twitter.com/WPxDnFAesE</a></p>
<p>— MindfulRipple-Jack (@bakisjack) <a href="https://twitter.com/bakisjack/status/1720311924552827052?ref_src=twsrc%5Etfw">November 3, 2023</a></p>
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<p>Lastly, from an advertising standpoint, a recent study released by the UK’s Internet Advertising Bureau (IAB), in collaboration with MTM, found that trust in digital advertising among UK SMEs has <a href="https://www.iabuk.com/news-article/smes-trust-digital-advertising-increases-almost-50-vs-2020" target="_blank" rel="noopener">increased by almost 50% since 2020</a>.</p>
<p>This bodes well for the future of online content and should improve general knowledge of digital best practices.</p>
<h4>Tech for bad</h4>
<p>Tech giants such as Meta and Google have been under fire this year, with a number of allegations of abusing their dominance and misleading consumers with dishonest advertising practices.</p>
<p>Stories of this sort have started to develop into a recurring theme, which points towards a growing demand for accountability in the digital landscape.</p>
<p>Meta was fined by the French competition regulator for abusing its dominance in online advertising, highlighting concerns about big tech monopolies.</p>
<p>Google, meanwhile, was <a href="https://smartframe.io/blog/google-youtube-ads-violation-policies/" rel="noopener">accused of violating its own advertising policies by ad</a><a href="https://smartframe.io/blog/google-youtube-ads-violation-policies/" rel="noopener"> performance optimization platform Adalytics</a>. Adalytics stated the company&#8217;s subsidiary YouTube ran ads that were misleading for both brands and consumers.</p>
<p>Meanwhile, an in-depth study by news rating system NewsGuard found that <a href="https://smartframe.io/blog/newsguard-brands-wasting-money-programmatic-advertising-on-ai-generated/" rel="noopener">brands were wasting huge amounts of money</a> on programmatic advertising as their creatives were being placed on low-quality, AI-generated websites. This is all while the US government is taking Google to court in a <a href="https://www.bbc.co.uk/news/business-66755272" target="_blank" rel="noopener">historic lawsuit</a>.</p>
<p>In any case, to fight against the rising tide of such websites and to avoid wasting valuable ad spend, brands might want to consider establishing direct relationships with media publishers and ensure real due diligence across their entire advertising operations.</p>
<p>As scrutiny intensifies, we hope to see a shift towards a more transparent and responsible tech ecosystem.</p>
<h4>Challenges ahead</h4>
<p>It&#8217;s been a momentous year for artificial intelligence, and 2024 will no doubt welcome plenty of further developments.</p>
<p>However, with it comes a new force to be reckoned with – the weaponization of AI to change opinions and manipulate reality, which has become clear to see.</p>
<p>From a well-crafted image of the Pentagon pouring out black smoke, which caused a <a href="https://www.aljazeera.com/news/2023/5/23/fake-pentagon-explosion-photo-goes-viral-how-to-spot-an-ai-image" target="_blank" rel="noopener">temporary market crash</a> before it was debunked, to more recently with the Israel-Palestine conflict, where <a href="https://www.newsguardtech.com/misinformation-monitor/november-2023/" target="_blank" rel="noopener">a series of deepfakes were shared throughout social media</a>, seemingly to incite hatred and violence.</p>
<p>These are no longer isolated incidents. More than ever, we need tech organizations to commit to helping curb fake news and propaganda.</p>
<p>Honesty is integral to all forms of online content, even something more trivial like the below image of <a href="https://onefootball.com/en/news/the-fake-jurgen-klopp-shush-image-that-fooled-everyone-38115918" target="_blank" rel="noopener">Jurgen Klopp</a>. This all highlights the need for more education about AI and how it can be used for harm.</p>
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<p dir="ltr" lang="en">This is mad. I saw that picture of Klopp shushing Jason Tindall all over the timeline and <a href="https://twitter.com/LewVisualss?ref_src=twsrc%5Etfw">@LewVisualss</a> had altered it and even put his watermark behind it as proof.</p>
<p>It’s even made it onto the front of the Telegraph’s Sport section. <a href="https://t.co/mp6K2Uqcd2">https://t.co/mp6K2Uqcd2</a> <a href="https://t.co/sF4YMVMD9G">pic.twitter.com/sF4YMVMD9G</a></p>
<p>— HLTCO (@HLTCO) <a href="https://twitter.com/HLTCO/status/1696068136737308882?ref_src=twsrc%5Etfw">August 28, 2023</a></p>
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<p>Lastly – and something that’s been brewing for a while, and which will have a massive impact for advertising strategies and online user experience – Google is finally set to remove support for <a href="https://smartframe.io/blog/will-the-third-party-cookie-ever-die-google-delays-phase-out-in-chrome-until-2024/" rel="noopener">third-party cookies in its Chrome browser</a>.</p>
<p>What does this mean? Not only will you stop receiving the kinds of invasive ads many of us are now used to, but brands will have to get more creative and focus more on contextual relevance and quality.</p>
<p>This should also encourage advertisers to talk directly to consumers and develop more valuable relationships with them, instead of relying on third-party cookies to track every movement.</p>
<p>We’ll have our predictions for 2024 ready for you in the new year. Until then, have a wonderful Christmas!</p>								</div>
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		<p>The post <a href="https://smartframe.io/blog/2023-tech-recap-the-stories-that-stood-out/">2023 tech recap: The stories that defined the year</a> appeared first on <a href="https://smartframe.io">SmartFrame</a>.</p>
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		<title>What does Meta’s recent €390m fine mean for big tech and personalized ads?</title>
		<link>https://smartframe.io/blog/what-does-metas-recent-e390-fine-mean-for-big-tech-and-personalized-ads/</link>
		
		<dc:creator><![CDATA[SmartFrame]]></dc:creator>
		<pubDate>Tue, 31 Jan 2023 10:39:50 +0000</pubDate>
				<category><![CDATA[News & Features]]></category>
		<category><![CDATA[advertising]]></category>
		<category><![CDATA[gdpr]]></category>
		<category><![CDATA[Meta]]></category>
		<category><![CDATA[social media]]></category>
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					<description><![CDATA[<p>Does Meta&#8217;s €390m GDPR fine spell the end of days for personalized [&#8230;]</p>
<p>The post <a href="https://smartframe.io/blog/what-does-metas-recent-e390-fine-mean-for-big-tech-and-personalized-ads/">What does Meta’s recent €390m fine mean for big tech and personalized ads?</a> appeared first on <a href="https://smartframe.io">SmartFrame</a>.</p>
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									<p style="font-size: 21px; line-height: 30px;"><b>Does Meta&#8217;s €390m GDPR fine spell the end of days for personalized advertising as we know it?</b></p>
<p><span style="font-weight: 400;">Earlier this month, Ireland’s Data Protection Commission (DPC) levied a </span><a href="https://www.theguardian.com/technology/2023/jan/04/meta-dealt-blow-eu-ruling-data-opt-in-facebook-instagram-ads" target="_blank" rel="noopener"><span style="font-weight: 400;">€390 million</span></a><span style="font-weight: 400;"><a href="https://www.theguardian.com/technology/2023/jan/04/meta-dealt-blow-eu-ruling-data-opt-in-facebook-instagram-ads" target="_blank" rel="noopener"> (£343m) fine against social media giant Meta</a> – the parent company of Facebook, Instagram, and Whatsapp – for unlawful data processing operations in relation to the EU’s General Data Protection Regulations (GDPR).</span><b> </b></p>
<p><span style="font-weight: 400;">This is the most recent addition to a </span><a href="https://techcrunch.com/2023/01/04/facebook-instagram-gdpr-forced-consent-final-decisions/?guccounter=1&amp;guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&amp;guce_referrer_sig=AQAAAKjYhBccfE1gdnPSPjCP_9LpECD16PP0FL7sEFDjvxd1iVCe5Hvgf5QDSVuQhDcBEi1geRRno7TjGVzspo7VrpP26tbgRv5dU91PiB6Bwcx1odRW3M-xoJQvxmbGUKZOCIRVK161YMdFXGOHYU4E3NmD0Vod0LvDGjA7FRwT82Iq" target="_blank" rel="noopener"><span style="font-weight: 400;">list of privacy-related fines</span></a><span style="font-weight: 400;">, and one that may mark the end of its ad targeting model, which is central to its business – and most of the advertising ecosystem.</span></p>
<p><span style="font-weight: 400;">So how did this happen?</span></p>
<p><span style="font-weight: 400;">At present, </span><a href="https://www.ft.com/content/5f8240af-865a-4cf6-8a5a-4d6cf1d5fcb1" target="_blank" rel="noopener"><span style="font-weight: 400;">80%</span></a><span style="font-weight: 400;"><a href="https://www.ft.com/content/5f8240af-865a-4cf6-8a5a-4d6cf1d5fcb1" target="_blank" rel="noopener"> of Facebook’s revenue stems from personalized ads</a>. To preserve this working model, Meta Ireland – the part of the business impacted by this latest ruling – made the processing of personal data a &#8220;</span><a href="https://about.fb.com/news/2023/01/how-meta-uses-legal-bases-for-processing-ads-in-the-eu/" target="_blank" rel="noopener"><span style="font-weight: 400;">contractual necessity</span></a><span style="font-weight: 400;">&#8221; when GDPR came into effect in May 2018. This meant that users had to agree to the terms of service to use either Facebook or Instagram.</span></p>
<p><span style="font-weight: 400;">However, privacy campaign group </span><span style="font-weight: 400;">Noyb</span><span style="font-weight: 400;">, led by activist Max Schrems, triggered an investigation against the company, <a href="https://noyb.eu/en/breaking-meta-prohibited-use-personal-data-advertising#:~:text=The%20decision%20means%20that%20Meta,'yes%2Fno'%20option." target="_blank" rel="noopener">arguing this did not give users a true choice</a> in the matter – in effect, ‘forcing’ individuals to consent. </span></p>
<p><span style="font-weight: 400;">As a result, while the DPC had originally ruled in favor of the company, the European Data Protection Board (EDPB) reversed this decision, a verdict Meta Ireland plans to appeal, maintaining that as ‘</span><a href="https://about.fb.com/news/2023/01/how-meta-uses-legal-bases-for-processing-ads-in-the-eu/" target="_blank" rel="noopener"><span style="font-weight: 400;">inherently personalized</span></a><span style="font-weight: 400;">’ platforms, personalized ads are &#8220;a necessary and essential part&#8221; of the unique user experience.</span></p>
<h3>Data collection post-GDPR</h3>
<p><span style="font-weight: 400;">According to the <a href="https://www.dataprotection.ie/en/news-media/data-protection-commission-announces-conclusion-two-inquiries-meta-ireland" target="_blank" rel="noopener">DPC’s </a></span><a href="https://www.dataprotection.ie/en/news-media/data-protection-commission-announces-conclusion-two-inquiries-meta-ireland" target="_blank" rel="noopener"><span style="font-weight: 400;">press statement</span></a><span style="font-weight: 400;">, Meta Ireland acted in contravention of transparency and fairness obligations, Articles 12 and 13(1)(c), and Article 5(1)(a) of GDPR law.</span></p>
<p><span style="font-weight: 400;">The company made steps toward providing users with more control over their data in 2020 by rolling out an </span><a href="https://www.eff.org/deeplinks/2020/01/facebook-history-welcome-incomplete-move" target="_blank" rel="noopener"><span style="font-weight: 400;">Off-Facebook Activity tool</span></a><span style="font-weight: 400;">, clearly displaying where identifiable information had been linked to their personal account through external apps, websites, and businesses (accessed through a Facebook login, for example).</span></p>
<p><span style="font-weight: 400;">But, crucially, this didn’t include the ways in which Facebook itself collected data on its users – an issue that was at the heart of this most recent legal debate.</span></p>
<p><strong>Read more:</strong> <a href="https://smartframe.io/blog/do-consumers-actually-trust-advertising/">Do consumers actually trust advertising?</a></p>
<p><span style="font-weight: 400;">Meta Ireland has now been given </span><a href="https://www.theguardian.com/technology/2023/jan/04/meta-dealt-blow-eu-ruling-data-opt-in-facebook-instagram-ads" target="_blank" rel="noopener"><span style="font-weight: 400;">three months</span></a><span style="font-weight: 400;"> to transform its operations to meet compliance regulations, which includes giving users the choice to “opt-in” to having their data used for targeted ads. But since the tech giant plans to appeal, real changes may not come into effect for years to come.</span></p>
<p><span style="font-weight: 400;">This latest blow to its business model, following the </span><a href="https://www.ft.com/content/4c19e387-ee1a-41d8-8dd2-bc6c302ee58e" target="_blank" rel="noopener"><span style="font-weight: 400;">$10 billion</span></a><span style="font-weight: 400;"><a href="https://www.ft.com/content/4c19e387-ee1a-41d8-8dd2-bc6c302ee58e" target="_blank" rel="noopener"> hit dealt by Apple’s privacy changes</a>, could signal an end to personalized advertising as we know it.</span></p>
<h3>Which companies have been affected?</h3>
<p><span style="font-weight: 400;">While Meta seems to be seeing fines on all fronts – </span><a href="https://www.thedrum.com/news/2022/11/15/googles-400m-penalty-the-impact-the-5-heftiest-data-privacy-fines-2023-ad-plans" target="_blank" rel="noopener"><span style="font-weight: 400;">WhatsApp and Instagram</span></a><span style="font-weight: 400;"><a href="https://www.thedrum.com/news/2022/11/15/googles-400m-penalty-the-impact-the-5-heftiest-data-privacy-fines-2023-ad-plans" target="_blank" rel="noopener"> have also been targeted</a> – it’s not the only tech giant that has recently faced legal challenges.</span></p>
<p><span style="font-weight: 400;">Earlier this month, France’s National Commission on Informatics and Liberty (CNIL) <a href="https://www.cnil.fr/en/advertising-id-apple-distribution-international-fined-8-million-euros" target="_blank" rel="noopener">levied an </a></span><a href="https://www.cnil.fr/en/advertising-id-apple-distribution-international-fined-8-million-euros" target="_blank" rel="noopener"><span style="font-weight: 400;">€8 million fine</span></a><span style="font-weight: 400;"> (just under $8.5 million) against Apple for tracking iOS 14.6 users within its own apps without explicit consent.</span></p>
<p><strong>Read more:</strong> <a href="https://smartframe.io/blog/the-5-biggest-gdpr-fines-and-why-they-were-issued/" target="_blank" rel="noopener">The 5 biggest GDPR fines – and why they were issued</a></p>
<p><span style="font-weight: 400;">Elsewhere in Europe, <a href="https://www.reuters.com/technology/apple-says-it-has-complied-with-dutch-watchdog-letter-2022-02-28/" target="_blank" rel="noopener">Apple was fined </a></span><a href="https://www.reuters.com/technology/apple-says-it-has-complied-with-dutch-watchdog-letter-2022-02-28/" target="_blank" rel="noopener"><span style="font-weight: 400;">nine times</span></a><span style="font-weight: 400;"> by a Dutch antitrust regulator – and it looks like the Department of Justice </span><a href="https://www.politico.com/news/2022/08/26/justice-department-antitrust-apple-00053939" target="_blank" rel="noopener"><span style="font-weight: 400;">may follow suit</span></a><span style="font-weight: 400;">.</span></p>
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<p><span style="font-weight: 400;">Google and Amazon are not immune either. In November 2022, Google agreed to a </span><a href="https://www.thedrum.com/news/2022/11/15/googles-400m-penalty-the-impact-the-5-heftiest-data-privacy-fines-2023-ad-plans" target="_blank" rel="noopener"><span style="font-weight: 400;">$391.5 million settlement</span></a><span style="font-weight: 400;"> after 40 US states alleged the illegal tracking of user locations, in addition to an $85 million settlement in Arizona for a similar case. Amazon Europe, meanwhile, <a href="https://www.cnbc.com/2021/07/30/amazon-hit-with-fine-by-eu-privacy-watchdog-.html" target="_blank" rel="noopener">was fined $877m in July 2021</a>, a decision it is currently trying to appeal.</span></p>
<p><span style="font-weight: 400;">Google also currently faces an </span><a href="https://www.reuters.com/legal/google-asks-court-toss-out-federal-antitrust-lawsuit-2022-12-13/" target="_blank" rel="noopener"><span style="font-weight: 400;">antitrust lawsuit</span></a><span style="font-weight: 400;">, which was levied at the company due to its monopoly, and Amazon has only recently </span><a href="https://ec.europa.eu/commission/presscorner/detail/en/ip_22_7777" target="_blank" rel="noopener"><span style="font-weight: 400;">settled</span></a><span style="font-weight: 400;"><a href="https://ec.europa.eu/commission/presscorner/detail/en/ip_22_7777" target="_blank" rel="noopener"> an antitrust investigation</a> by promising to address concerns around data use, its ‘Buy Box’ ad inventory – that is, ads placed right at the fold of the page and exclusively reserved for Amazon products – and Prime.</span></p>
<h3>Is Big Tech falling out of favor?</h3>
<p><span style="font-weight: 400;">Tech giants had a lot to contend with in 2022. Legal challenges aside, economic uncertainty has also shaken the stability of hitherto seemingly impervious corporations. </span></p>
<p><a href="https://www.cnbc.com/2022/11/09/tech-layoffs-2022.html" target="_blank" rel="noopener"><span style="font-weight: 400;">Layoffs</span></a><span style="font-weight: 400;"><a href="https://www.cnbc.com/2022/11/09/tech-layoffs-2022.html" target="_blank" rel="noopener"> are sweeping the industry</a>. Meta reportedly let go of roughly 11,000 employees while Twitter cut 3,700 – half its staff. Snap, meanwhile, laid off over 1,000 employees (20% of staff) and Alphabet has announced its largest round of dismissals of 12,000 (6% of staff), while <a href="https://www.bbc.co.uk/news/business-64171008" target="_blank" rel="noopener">Amazon disclosed it would be cutting 18,000 jobs</a>.</span></p>
<p><span style="font-weight: 400;">Apple stands out as one of the few that has not had to enact such strident measures, although CEO Tim Cook has </span><a href="https://www.theverge.com/2022/11/14/23457837/tim-cook-confirms-that-apples-slowing-down-on-hiring" target="_blank" rel="noopener"><span style="font-weight: 400;">confirmed</span></a><span style="font-weight: 400;"><a href="https://www.theverge.com/2022/11/14/23457837/tim-cook-confirms-that-apples-slowing-down-on-hiring" target="_blank" rel="noopener"> the business will significantly slow hiring in 2023</a>.</span></p>
<p><strong>Read more:</strong> <a href="https://smartframe.io/blog/smart-glasses-everything-you-need-to-know/">Smart glasses: Everything you need to know</a></p>
<p><span style="font-weight: 400;">The general atmosphere implies that change is inevitable, with signs that faith in previously popular tech behemoths is waning. </span></p>
<p><span style="font-weight: 400;">Google, and its parent company Alphabet, <a href="https://www.fastcompany.com/90673924/its-not-just-you-google-search-really-is-getting-worse" target="_blank" rel="noopener">can no longer</a> deny the </span><span style="font-weight: 400;">influence</span><span style="font-weight: 400;"> advertising has on its globally dominant search engine. While </span><a href="https://www.statista.com/statistics/216573/worldwide-market-share-of-search-engines/" target="_blank" rel="noopener"><span style="font-weight: 400;">84%</span></a><span style="font-weight: 400;"><a href="https://www.statista.com/statistics/216573/worldwide-market-share-of-search-engines/" target="_blank" rel="noopener"> of the world still relies on Google</a> to browse the web, <a href="https://freakonomics.com/podcast/is-google-getting-worse/" target="_blank" rel="noopener">detractors of Google’s </a></span><a href="https://freakonomics.com/podcast/is-google-getting-worse/" target="_blank" rel="noopener"><span style="font-weight: 400;">advertising</span></a><span style="font-weight: 400;"> model – and the way in which it undermines the quality of search results – are </span><a href="https://www.ft.com/content/228af985-7bf2-4efd-ad73-ae11d1623a58" target="_blank" rel="noopener"><span style="font-weight: 400;">increasing</span></a><span style="font-weight: 400;">.</span></p>
<p><span style="font-weight: 400;">Amazon also <a href="https://s2.q4cdn.com/299287126/files/doc_financials/2022/q3/Q3-2022-Amazon-Earnings-Release.pdf" target="_blank" rel="noopener">reported </a></span><a href="https://s2.q4cdn.com/299287126/files/doc_financials/2022/q3/Q3-2022-Amazon-Earnings-Release.pdf" target="_blank" rel="noopener"><span style="font-weight: 400;">a loss</span></a><span style="font-weight: 400;"><a href="https://s2.q4cdn.com/299287126/files/doc_financials/2022/q3/Q3-2022-Amazon-Earnings-Release.pdf" target="_blank" rel="noopener"> last quarter</a>, blamed in part on its reportedly failing virtual assistant </span><a href="https://www.businessinsider.com/amazon-alexa-job-layoffs-rise-and-fall-2022-11" target="_blank" rel="noopener"><span style="font-weight: 400;">Alexa</span></a>, while <span style="font-weight: 400;">Twitter has been consistently making headlines since Elon Musk took it over, caught in a continuous storm of </span><a href="https://www.theguardian.com/technology/2022/sep/13/twitter-whistleblower-testimony-congress-peiter-zatko" target="_blank" rel="noopener"><span style="font-weight: 400;">security</span></a><span style="font-weight: 400;">, </span><a href="https://www.bleepingcomputer.com/news/security/54-million-twitter-users-stolen-data-leaked-online-more-shared-privately/" target="_blank" rel="noopener"><span style="font-weight: 400;">privacy</span></a><span style="font-weight: 400;">, and </span><a href="https://www.theguardian.com/technology/2022/dec/29/twitter-users-report-global-outage-with-many-unable-to-log-into-website-or-app" target="_blank" rel="noopener"><span style="font-weight: 400;">mismanagement</span></a><span style="font-weight: 400;"> issues, with </span><a href="https://www.theguardian.com/technology/2022/nov/30/eu-raises-prospect-of-big-fine-or-ban-if-twitter-fails-to-follow-new-legislation" target="_blank" rel="noopener"><span style="font-weight: 400;">fresh lawsuits</span></a><span style="font-weight: 400;"> on the horizon. </span></p>
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<p><span style="font-weight: 400;">When it comes to Apple, the <a href="https://www.theverge.com/2022/10/27/23427035/apple-q4-2022-earnings-iphone-14-sales-mac-services" target="_blank" rel="noopener">demand for the latest iPhone range has been described as </a></span><a href="https://www.theverge.com/2022/10/27/23427035/apple-q4-2022-earnings-iphone-14-sales-mac-services" target="_blank" rel="noopener"><span style="font-weight: 400;">lukewarm</span></a><span style="font-weight: 400;">, with criticisms highlighting a </span><a href="https://www.vice.com/en/article/qjk3nb/even-steve-jobs-daughter-wonders-what-the-difference-between-each-iphone-is" target="_blank" rel="noopener"><span style="font-weight: 400;">lack of innovation</span></a><span style="font-weight: 400;"> behind each </span><a href="https://www.wired.com/review/apple-iphone-14/" target="_blank" rel="noopener"><span style="font-weight: 400;">new generation</span></a><span style="font-weight: 400;"> getting louder. As a result – and potentially off the back of iPhone revenues <a href="https://www.bloomberg.com/news/articles/2022-09-28/apple-iphone-14-sales-not-strong-enough-to-trigger-production-boost?leadSource=uverify%20wall" target="_blank" rel="noopener">falling short of </a></span><a href="https://www.bloomberg.com/news/articles/2022-09-28/apple-iphone-14-sales-not-strong-enough-to-trigger-production-boost?leadSource=uverify%20wall" target="_blank" rel="noopener"><span style="font-weight: 400;">estimates</span></a><span style="font-weight: 400;"> – the company seems to be pivoting towards expanding its </span><a href="https://www.wired.com/story/apple-subscriptions-apple-news-plus-apple-card-apple-arcade/" target="_blank" rel="noopener"><span style="font-weight: 400;">subscription</span></a><span style="font-weight: 400;"> and advertising services. </span></p>
<p><span style="font-weight: 400;">Apple Services, which includes music and video streaming, video games, and cloud storage, has been its second-largest segment for </span><a href="https://www.statista.com/statistics/382136/quarterly-segments-revenue-of-apple/" target="_blank" rel="noopener"><span style="font-weight: 400;">some time now</span></a><span style="font-weight: 400;">, and the company has started opening up the </span><a href="https://www.macrumors.com/2022/07/29/new-app-store-ads-today-tab/" target="_blank" rel="noopener"><span style="font-weight: 400;">App Store</span></a><span style="font-weight: 400;"> front page and potentially also </span><a href="https://digiday.com/media/apple-is-quietly-pushing-a-tv-ad-product-with-media-agencies/" target="_blank" rel="noopener"><span style="font-weight: 400;">Apple TV+</span></a><span style="font-weight: 400;"> to ad buyers. </span></p>
<p><strong>Read more:</strong> <a href="https://smartframe.io/blog/we-stream-music-and-videos-so-why-not-images/">We stream music and movies. So why not images?</a></p>
<p><span style="font-weight: 400;">It’s worth noting that this move, when considered alongside how the iOS privacy features have </span><a href="https://www.ft.com/content/4c19e387-ee1a-41d8-8dd2-bc6c302ee58e" target="_blank" rel="noopener"><span style="font-weight: 400;">cost its rivals</span></a><span style="font-weight: 400;">, has alarmed </span><span style="font-weight: 400;">German regulators</span><span style="font-weight: 400;">, who are now <a href="https://gizmodo.com/apple-app-store-iphone-ads-privacy-antitrust-germany-pr-1849058746" target="_blank" rel="noopener">investigating the action from an anti-competition perspective</a>.</span></p>
<h3>Future-proofing solutions and strategies</h3>
<p><span style="font-weight: 400;">The recent ruling against Meta is only one in a long line of legal and regulatory difficulties all big tech companies faced across 2022. And there is </span><a href="https://www.adexchanger.com/online-advertising/the-year-ahead-in-antitrust-for-big-tech-in-the-us-and-abroad/" target="_blank" rel="noopener"><span style="font-weight: 400;">no sign of them stopping</span></a><span style="font-weight: 400;"> in 2023.</span></p>
<p><span style="font-weight: 400;">Rapid growth and global deregulation have contributed to a media sphere where data missteps, misinformation, and fraud are widespread. The privacy reckoning that was set in motion with the implementation of GDPR in 2018 and the consequent fines runs in tandem with repeated antitrust allegations; big corporations are now having to transform their expansive operations to meet tighter restrictions on their activities.</span></p>
<p><span style="font-weight: 400;">What does this mean for advertisers? First and foremost, in the face of increased scrutiny, brands, publishers, and advertisers alike need to be careful with how they collect and process individual user data.</span></p>
<p><span style="font-weight: 400;">For those who have begun to search for and build their own privacy-compliant models, it’s important to continue refining these. </span><span style="font-weight: 400;">Solutions such as contextual targeting, that do not rely on individual user data, are becoming ever-more popular in response to a rapidly changing media and ad tech landscape.</span></p>
<p><span style="font-weight: 400;">For those working with walled gardens, it’s unlikely there will be an immediate shift in how advertising is done – but it’s definitely on the horizon.</span></p>								</div>
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		<p>The post <a href="https://smartframe.io/blog/what-does-metas-recent-e390-fine-mean-for-big-tech-and-personalized-ads/">What does Meta’s recent €390m fine mean for big tech and personalized ads?</a> appeared first on <a href="https://smartframe.io">SmartFrame</a>.</p>
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