Facebook, has been increasing its focus on its “Messenger” app this year, looking to make it the “go to” app for its more than one billion active users. Its mobile messaging app “Whatsapp” has also seen significant growth in number of users and we believe both these products will be key revenue drivers for the company in the long term. However, competition in the messaging segment intensified after Google launched its “Allo” messaging app, which uses artificial intelligence to provide smart answers and suggests replies to conversations. The latest messenger by Google also has a built in “assistant” to help during conversations, differentiating it from Facebook’s messaging apps. While this feature impacts the privacy of messages (which are stored on Google’s servers) and Google allows encryption only in an incognito mode, it leads to easier access for information and more convenience during chats. However, Google’s past experience in social media has not been very encouraging and Allo is a new entrant in the space dominated by Facebook with its huge user base. While Allo’s “intelligent” features are compelling, privacy concerns can impact usage. In addition, users already familiar with Whatsapp and Facebook’s Messenger might be reluctant to move into another app. Google’s ability to use technology to create a differentiated app which can offer advanced features without compromising on privacy will be key to lure users away from Facebook’s messaging apps.

from Forbes – Tech http://ift.tt/2dkIJ3i
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