This week Fast Company resurfaced the debate over Facebook adding "from Facebook" branding to Instagram and Whatsapp, saying "this may be a branding disaster." We think it’s a smart decision, a low-risk way for Facebook to bask in the glow of beloved apps.
At a glance, Fast Company’s argument makes sense:
Users don’t like or trust Facebook. Two-thirds of Facebook users say they don’t trust the company. And Facebook’s reputation is among the worst of any large company.
Other “from Facebook” products have flopped. The company also slaps this label on Oculus VR headsets and Portal smart-home devices; sales have been awful.
But look deeper. This change won’t solve all the company’s problems, but it’s worth a shot. Why?
Portal and Oculus didn’t fail because of branding. Portal failed because it isn’t very good. Oculus headsets, while better-reviewed, target a small market at a prohibitively high price.
Facebook needs the reflected glow. People love Instagram and Whatsapp. Teens in particular have flocked to Instagram. But most don’t know Facebook owns their favorite apps. It’s a free reputation boost for Facebook.
It won’t hurt Instagram or Whatsapp. Think people will stop using these apps because Facebook owns them? Facebook’s user numbers keep growing, even in the midst of crisis, even in the US and Europe. Few will leave Instagram or Whatsapp over ownership.
So laugh all you want at Facebook’s “disaster”; it’s more likely to help the company that hurt it.
Image source: Axios.