Facebook Inc (NASDAQ:FB) is updating its privacy policy, but this time its letting the users decide. The social networking site’s new privacy policy will reflect changes to the site’s forma, including the timeline platform, and also opens up new advertising possibilities for the site.
Voting will begin on next Friday and will run throughout next week. Users will be offered the choice of accepting or rejecting the policy. Facebook previously allowed viewers to vote on a privacy policy in 2009 when the site had less than 200 million users. If 30% of users vote for the measure the new policy will be implemented.
The move, though with precedence, is clearly part of a strategy that will help endear users tot the site. Facebook fears alienating its user base which is its biggest asset. The company’s future is under threat at the moment as investors lose faith in the company.
Any loss in its user base could be disastrous for the company as it seeks to cement its position. If a user leaves a social network it increases the likelihood that users friends will leave the site. It is that trend that leads to worries for the web site.
Allowing users to vote on the privacy policy is a smart move on the part of Facebook’s management. If users are given a choice they feel more involved in the process and are less likely to protest the move. Facebook Inc (NASDAQ:FB) is trying to avoid the fiasco faced by Google Inc (NASDAQ:GOOG) when it launched its updated privacy policy earlier this year.
Facebook faces a whole host of problems as it moves into the behavioral patterns of a public company. There is now a much wider range of investors to keep happy with the company’s progress and revenue growth is the biggest concern on that front.
Facebook’s revenue is most concerned with increasing Average Revenue Per User, ARPU, that metric will surely be augmented if the company manages to pass the new privacy policy. The new agreement will allow the firm to advertise based on the hobbies of users. Those ads will be allowed to link to outside web sites.
Facebook is still acting like its user base is a community with which it seeks to evolve rather than a fascistic element that enforces changes on users. That strategy should help to keep its users from being overly concerned with the way their personal data is used and shared.
