Apple announced new updates on iOS 14 in June and one notable change is that apps will be required to ask users for permission to collect and share their data using Apple’s Device Identifier. This will make it more difficult for companies to track users’ data and Facebook has revealed that this will have devastating effects on its business.
Facebook’s Audience Network has been using the Unique Device Identifier (IDFA) to track users data and develop personalized advertising in third-party apps
“For developers and publishers using Audience Network, our ability to deliver targeted ads on iOS 14 will be limited. As a result, some iOS 14 users may not see any ads from Audience Network, while others may still see ads from us, but they’ll be less relevant.” Facebook explained in a Blog Post.
Now the Social Media giant is worried that without access, its revenue from iOS could decline by 50 per cent due to the inability to deliver targeted ads. Facebook says this could make them stop developing Audience Network for iOS altogether.
“This is not a change we want to make, but unfortunately Apple’s updates to iOS 14 have forced this decision. We know this may severely impact publishers’ ability to monetize through Audience Network on iOS 14, and, despite our best efforts, may render Audience Network so ineffective on iOS 14 that it may not make sense to offer it on iOS 14 in the future,” the blog post said.
Facebook internal app advertising will not be affected by this latest development. Although not clear to what percentage, Audience Network also contributes to Facebook’s revenue.
Restricting data collection will result in significant loss of business, which Facebook has been quite vocal about. The company has voiced its concerns regarding changes imposed by the regulator and how other platforms affect them.
During Facebook’s earnings call, company executives pointed out that Facebook was helping small businesses especially during the pandemic and preventing targeted advertising could result in devastating effects on the overall digital economy.
“We understand that iOS 14 will hurt many of our developers and publishers at an already difficult time for businesses. We work with more than 19,000 developers and publishers from around the globe and in 2019 we paid out billions of dollars. Many of these are small businesses that depend on ads to support their livelihood.” The Blog post further said.