Essentially, Facebook owns a mini App Annie, getting its own private App Store and Google Play analytics.

How Facebook Knows What’s Hot Before You Do (and Why There Are so Many Free Utility Apps)

Essentially, Facebook owns a mini App Annie, getting its own private App Store and Google Play analytics.

Staff Writer

Facebook knows what’s hot in mobile perhaps before any other company. And the person Big Blue Social has to thank for it is you.

If data is the new oil, Onavo is a big fat pump in a Texas field, pulling black gold out of the matrix. Facebook acquired the Israeli company in late 2013, and the public statements about Onavo’s place in the Facebook ecosystem were all about using data more efficiently so more people can connect and share.

And, a Facebook representative added, “their analytic tools will help us provide better, more efficient mobile products.”

Indeed.

Onavo’s technology is a VPN, a virtual private network. A VPN helps you browse and surf privately, by protecting your location, internet address, and other data from the services you connect to on the web and via mobile apps. That’s often a good thing, and Onavo added something even better: by compressing data and making it even more efficient to send and receive, Onavo reduces your data bill.

That’s a nice-to-have in the U.S, but it’s essential in many developing economies where connectivity is slow and mobile data is expensive.

Those benefits, of course, are the bait.

The hook is that Onavo knows what its users do, where they go, and what they access. And, since Facebook owns the app, Facebook knows.

You might wonder why Facebook needs that data. After all, with literally billions of users, sure Facebook has enough data to know precisely what’s hot and what’s not?

In a sense yes, but in another sense, no.

We live in a mobile world today, and almost all innovation in media and technology is happening at end points that touch people (phones, vehicles, electronics, homes) and connection points that aggregate data and extract knowledge (the cloud). The most powerful and popular end point today is — you guessed it — the smartphone.

Just by opening an app or browsing the web, we all generate a sea of data daily.

When those actions happen outside of Facebook, Facebook is often blind to those activities. That means it could be blind to the innovation happening at the key end point that, to continue to grow into the world’s largest people connector, Facebook must dominate. The problem with dominating the smartphone is that although Facebook’s apps are massively popular, the only two mobile platforms on the planet that matter are owned by frenemies. Or, coopetitors.

I’m talking, of course, about Google and Apple.

New competition for Facebook is most likely to arise on the smartphone, but Facebook doesn’t own the smartphone, and therefore has limited visibility into what might be growing, silently in the dim mists of Google Play’s back rooms, or building a base for rapid future expansion quietly in the App Store’s lesser-visited hallways.

Facebook could, of course, buy multiple licenses from mobile analytics firms like App Annie, and it probably does.

But there’s nothing like owning your own private porthole into the emerging winners of the space that could eventually threaten your dominance.

So, as the Wall Street Journal revealed today, Facebook built an early warning service to notify them when apps were picking up traction and getting hot, especially in the social space, which it currently owns … and wants to continue owning.

Onavo, which funnels data from perhaps 30 million users globally, provides the canary in the coal mine.

And, it’s worth knowing, this is one reason why the App Store and Google Play have a proliferation of flashlight, utility, data compression, and VPN tools. Many of them ask for permissions to see what is happening on your mobile device, and then sell the data.

If you’re not paying for the product, after all, you are the product.

The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.

Read Next


Latest

First, you need a life philosophy.

4 Things You Can Do Right Away to Make Your Life Simpler and More Fulfilling

How can I make my life simpler? originally appeared on Quora - the place to gain and share knowledge, empowering people to learn from others and better understand the world.Answer by Cristina Hartmann, worked at Federal Communications Commission,... (contd.)
What measures should a new, privately owned enterprise put in place at the outset, so that they practice good governance even after they become big?

For Strong Leadership When Your Company Gets Big, Do These 3 Things While It’s Still Small

What measures should a new, privately owned enterprise put in place at the outset, so that they practice good governance even after they become big? originally appeared on Quora: the place to gain and share... (contd.)
Instead of steering clear, embrace social media. Here's why

CEO’s Should Embrace Social Media, Not Avoid It. Here’s Why

This week, Wall Street Journal columnist Bruce Nolop published an article entitled Why CEOs Should Steer Clear of Social Media. In the article, Nolop argues that CEOs of companies large and small should... (contd.)
VAT deadline in Saudi Arabia

Clarity: Saudi Businesses Now Have Till December 20 To Register For VAT

Saudi authorities have clarified that December 20 is now the deadline for mandatory Value Added Tax (VAT) registration in Saudi Arabia, ending days of confusion and speculation in financial and business circles.At... (contd.)
ADGM Foundations

From Abu Dhabi, A New Way For Gulf Family Businesses To Preserve Wealth

Abu Dhabi Global Market (ADGM), an international financial centre based in the UAE' capital, has launched a new legal structure to support wealth management and preservation between family generations.ADGM said its new... (contd.)
- Advertisement -
Join Our Daily Newsletter
Sign up to get all the business news and intelligence that matters straight to your mailbox.
Join Our Newsletter !
Like This Article? Subscribe To Our Newsletter To Receive More Of Them Straight In Your Inbox
Contact Us.
Your Name
Email
Message
     
Thank you for your interest in Inc. Arabia. Please leave your contact details below, and we'll be in touch with you very soon.
Like This Article? Subscribe To Our Newsletter To Receive More Of Them Straight In Your Inbox