Facebook Goes Private. What Happens to the Ad Business?

Facebook wanted a more private conversation. Could it keep the same advertising business? In this March 2019 CNBC segment, Matt Britton examines the move toward encrypted messaging.

He describes the change as an “evolutionary revolution.” Messenger and WhatsApp were already part of daily communication, so he expected a gradual progression of features rather than a sudden change in users’ habits.

Privacy is the central tension. The discussion considers consumers’ unease about the use of personal information after scrutiny of data practices and political interference. Matt describes the possibility of drawing advertising signals from private conversations and why that prospect can feel intrusive, even when the processing is automated.

He interprets the shift as a move away from using one-to-one messages for advertising segmentation. In his assessment, public activity and broader behavioral data could continue to support targeting, while the mobile news feed remained central to revenue.

Matt distinguishes private messaging, closer to SMS or iMessage, from the public sharing that defines social networking. He also connects Facebook’s plans with younger users’ interest in Snapchat, disappearing messages and more private communication.

The strategic question is whether Facebook could meet those expectations while preserving its advertising engine. Matt views messaging as an extension of the ecosystem and leaves open how competitors might respond as social habits change.