Everyone wonders if Whatsapp is worth $19B and all poos and mehs around.. However, I would say $19B is cheap for what its worth in this context.
All Facebook has to do is, make users verify their phone numbers if they list one in facebook. Thats it.
It does not need to serve single advertisement in WhatsApp ever. Here is how FB could use Whats app to enrich its ad business
The moment a FB phone number is verified, suddenly the underlying data in FB and WhatsApp are related by a strong link. Yes – the phone number.
When i Whatsapp my friend Amy ” Hey ! how about a movie and dinner tonight” .. boom.. the data is right in there..
I log in to FB and see the ads for “About last night” movie, and the restaurant advertisement for an Indian Bistro.
Yes. Facebook can make all this advertisement decisions based on
– it knows which part of the world im from (hometown in facebook)
– it knows which part of the world im in (mobile number and location)
– it knows what kind of interests i have (my Facebook posts, likes, data mining my whatsapp and FB messenger conversations)
– What i have currently looked into (browser cookies)
And the best of all, till now, they serve advertisements based on your past. but with whatsapp messaging data they can use the context and even serve ads anticipating what im going to do next.
Now take into account, if facebook becomes aggressive and becomes a ad provider across the web. (a single step to kill google).. This would be the most cognitive ad network that you could see.
Lets take another instance of whatsapp message ” Hey buddy, tomorrow im busy. going to get my taxes done ”
and i get Advertisement in the web – ” H&R block gives 20% discount on taxes for tomorrow”.
Then it has got more data to do data analytics on my relationships. the moment it figures out that my relationship is going downhill, all those dating app advertisements come to me across the entire web.
And then comes the scarier part. Now Facebook is the single point of contact to get to know everything about you for legitimate governmental or any other illegitimate reasons.
one gets access to the Web based Facebook social graph. And then you get access to the Whatsapp based Mobile social graph.
Google must be thinking the impact. suddenly its ad network seems fragile.. Its not the content that makes FB looks richer.. its not the # of Users.. but the sudden potential for FB to predict what am going to do next. What am i looking for. it can induce me in to buying things or making decisions based on a casual conversation that i had with someone.. Wow…
Suddenly Facebook looks more powerful and much scarier.
Its time to go and buy more FB stocks.. accumulate it like never before..