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Why Facebook Scrapped Plans for Ads on WhatsApp

London, UK - July 31, 2018: The buttons of WhatsApp, Facebook, Twitter and other apps on the screen of an iPhone.

In 2014, Facebook acquired the WhatsApp messaging service for a hefty $22 billion. They clearly saw potential for substantial revenue, but it was recently announced that they have chosen not to sell ads on WhatsApp. It would understandably take a serious issue to deter Facebook from monetizing one of its assets, and the reasoning behind the company’s decision is a matter of data security.

WhatsApp’s founders had already left the company citing concerns about targeted ads and privacy. Their fear was that the app would have to lighten up on its end-to-end encryption to allow businesses to reach users with targeted ads on WhatsApp. Facebook is now working on other features that don’t compromise information safeguards, highlighting the importance of proper security.

Social networks are by no means the only businesses that should prioritize data protection, and your dealership’s customers count on you to handle their information with care.

Encryption is Essential

Encryption is the process of disguising sensitive information as code that only the intended recipient can decode and read. Communicating online without this safeguard leaves your material vulnerable to additional eyes that were never intended to see it. When Facebook CEO Mark Zuckerberg announced a shift across all their apps to focus on encrypted messaging, he emphasized the importance of privacy within online communications. When you submit your personal data to a company, confidentiality is key. This is especially true of car dealerships, where customers entrust financial information and other sensitive material.

Dealership Data Security

In 2017, there were nearly 10,000 reported cases of identity theft that could be directly traced to auto loans and leases. As more of your customer interactions become digital, it’s imperative that you handle identifying and financial details in a way that doesn’t put anyone at risk.

Just as Google rewards secure sites with higher search result placements, potential clients are more likely to offer their necessary information when they know that it will be handled with care. In 2016, Total Dealership Compliance conducted a survey that showed that more than 84 percent of car shoppers wouldn’t work with a dealership that had failed to protect their customers’ data.

Keep Your Information Safe

Security comes first when handling anyone’s personal data. At Strong Automotive Merchandising, we regularly handle sensitive information in our data science division. By using private servers and encryption, we are able to keep clients’ data out of the wrong hands.

Are you unsure of your website’s security? Contact us below to request a website audit and digital marketing analysis.

John Paul Strong

John Paul Strong combines his two decades of automotive marketing experience with a team of more than 150 professionals as owner and CEO of Strong Automotive.

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