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Twitter Implements Do Not Track Privacy Option

It's no secret that Facebook is worth about $100 billion because it collected personal data about its users.  A lot of data.  —  Although Twitter tracks its users too — albeit in a much less aggressive way — the company has decided to take a different route.

Bits Nick Bilton

Context & Ripple Effects

Twitter’s privacy move arrives after scrutiny of Facebook’s tracking practices and as Facebook’s IPO focuses attention on how social platforms turn user data into value. Twitter is drawing a visible distinction in a market where data collection is becoming a reputational issue.

First-order effects

  • Twitter users gain a browser-level way to signal that they do not want their activity tracked, forcing Twitter to make that preference part of its privacy posture.
  • Facebook faces a sharper comparison on tracking just as public and investor attention is concentrated on its data-driven business model.

Second-order effects

  • Social platforms competing for user trust have a clearer incentive to offer privacy controls that differentiate their data practices without abandoning personalized services.
  • Advertisers and third-party data partners must contend with a smaller pool of users available for tracking where people exercise the preference.

Third-order effects

  • If major social networks adopt comparable controls, user consent becomes a more explicit constraint on the data flows supporting targeted advertising.
  • The competitive boundary shifts from how much data a platform can collect toward whether it can make collection and user choice legible enough to preserve trust.

The trend: Consumer social platforms are beginning to treat privacy controls as both a response to tracking scrutiny and a point of product differentiation.