Should you put Vaseline directly on the baby or on the diaper instead?

My best friend just had her first baby. She’s using Vaseline to prevent diaper rash, but won’t let anyone put it on her baby. She puts it in the diaper instead. To me it seems like it wouldn’t help? The baby is 1 week old, she’s not sitting on her diaper, so the ointment can’t really rub off on her or anything?

I don’t have any kids of my own but I have 2 nephews and 2 nieces. I lived with all of them while they were babies and spent a lot of time helping to raise them. I’ve always put any Vaseline/rash cream/baby powder etc directly on the skin. It seems like being just on the diaper it wouldn’t get in their butt crack where they actually need it?