Facebook revealed how much the new iOS 14.5 will negatively affect advertising on the social network, as well as on Instagram. The conflicts between the company of Mark Zuckerberg and Tim Cook are nothing new and, apparently, are far from over. The most recent divergence is caused by Apple’s new release, App Tracking Transparency, which blocks tracking by apps and websites.
In a memo, sent to advertisers and obtained by 9to5mac, Facebook detailed the difficulties that will be faced. In general, the company collects user data through its third-party applications and services. The information is then used to draw consumption profiles, whose objective is to allow the creation of personalized and more effective advertisements.
This data collection also allows Facebook to provide advertisers with detailed performance statistics so they can optimize their campaigns. But, with the new terms from Apple, the company will not be able to use this strategy in users who have devices from the manufacturer with iOS 14.5 and choose not to screen.
iOS 14.5. will affect Facebook business
From the user’s point of view, who values the privacy of their data, this is great news. From the company’s perspective, however, this represents a likely reduction in revenue. In the report, Facebook points out that the results of the ads would fluctuate gradually as users upgrade their devices to iOS 14.5.
This will affect the statistics, which will become less detailed, in addition to generating a decrease in the audience. Evidently, the company will also suffer financial impacts, already foreseen for the next semester.
Change can be positive
Although it spoke out against Apple’s decision, Facebook considered that the change may, at some level, be positive for business. That’s because the company will continue to track user behavior through its applications.
Facebook’s expectation is that companies will gradually migrate their online businesses to these applications. In this way, it will be possible to keep collecting user data as it currently does, with no worries about App Tracking Transparency.