Wednesday, August 12, 2020

Facebook says iOS 14 changes could hurt its ad system

Facebook believes that Apple’s iOS 14 operating system could adversely affect its ability to target ads to users. iOS 14 introduces a wide range of new features to let users control which data each app can access, including clipboard notifications and also an option to disable tracking between apps. 

All these features were seen in the beta version of iOS14, which all set to roll out later this year officially. These features are already causing trouble to some developers as iOS 14 allows users to control which data each app can access.

Currently, a device ID number called the IDFA is used by advertisers to target ads better and estimate their effectiveness. iOS 14 gives users the option to opt-in to tracking when the option is first launched. Still, most users are expected to out as most users would not like to be tracked.

Read Also: Samsung is no longer the world’s biggest smartphone vendor

“We’re still trying to understand what these changes will look like and how they will impact us and the rest of the industry, but at the very least, it’s going to make it harder for app developers and others to grow using ads on Facebook and elsewhere,” Chief Financial Officer David Wehner said.

“Our view is that Facebook and targeted ads are a lifeline for small businesses, especially in the time of COVID, and we are concerned that aggressive platform policies will cut at that lifeline at a time when it is so essential to small business growth and recovery,” he added.

If you’re already using iOS 14 beta, you can find the new tracking option by accessing the Privacy menu in the Settings app.

All these changes would come into effect later this year, and according to Wehner, they would hugely affect Facebook’s revenue in the third and fourth quarters of this year as most of Facebook’s income comes from advertisers.

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Source: CNBC

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