In a conversation with Fox News correspondent, Cheryl Casone, Napolean Media Group founder, FrankyArriola, discusses the new initiatives of Facebook Inc. (NASDAQ:FB) as regards advertisements. The company has announced that it would let its users control the advertisements that they want to see. At the same time the company will also review the browsing habits of its users and share it with its advertisers. This study is to clearly understand the likes and preferences of the Facebook users.
The big question is whether these initiatives would be seen as too much of intrusion by Facebook Inc. (NASDAQ:FB) into the personal habits of its users. Arriola agrees that the company is getting into some personal details of its users. He further adds that it will, because it has to make money from its users. He counters the argument of privacy breach by saying that
“[…] They lay it out right there when you agree to join Facebook and any social media site, in general. Now the thing is, we say yes, but no one has read it.”
However, the data shared by Facebook Inc. (NASDAQ:FB) to advertisers still raises some questions. Arriola explains that all of these items are clearly covered in the Facebook website disclaimers. Facebook is placing lines of code on people’s computer to track their web habits and the explanation is that the company is doing this to make money.
So will the users of Facebook Inc. (NASDAQ:FB) get sick of the company’s prying into their personal world and shift their loyalties to some other site. Arriola says, whichever site the user turns to, whether it is Snapchat or Twitter Inc (NYSE:TWTR) or Instagram or any other social media site, the user will undergo a similar experience sooner or later, because these sites would never give up an opportunity to make money. He feels that everyone, including the consumer groups, will have to accept this practice with time.
Fox Point Capital Management, run by Charles Anderson sliced its position in Facebook Inc. (NASDAQ:FB) by 33% in the previous quarter and has 11.39% of its equity portfolio invested in the company, the stake containing 250,000 shares.