By: First Union | Date:
Will Apple's Upcoming iOS 14 Hurt Facebook's Advertising?
At some yet to be disclosed point, Apple is set to roll out iOS 14. And Facebook is nervous. The company suggested that the upcoming iOS 14 could cut its advertising business by as much as 50%. Earlier in the year warning of the same thing, Facebook reps are now getting increasingly specific about how their ad business could be impacted. They outlined in a blog post what the ramifications could entail. Currently, the Facebook Audience Network enables mobile developers to offer in-app ads which are consequently targeting users based upon info gotten from FB data.
There is a device ID number that marketers can use (IDFA/) to more effectively target their ads. And in the process, gauge how persuasive those ads are. With iOS 14, each ad that makes use of this identifier will first require users to opt in to tracking when the app launches. According to what Facebook has said, its apps will not collect IDFA info on iOS 14.
As of now, over a billion people see a minimum of one Audience Network generated ad per month. That said, those using Android phones won't be affected and will continue to see these ads. Facebook's revenue comes primarily from its advertising efforts. How much is attributed to the Audience Network versus other sources remains to be seen.
Since the announcement of the iOS 14 launch, Facebook has outlined how it will make sure that its advertising business does stay in compliance with Apple requirements. However, the efforts that they are going to implement are ultimately going to damper the effectiveness of ad targeting when it comes to iPhones and iPads.
Direct from Facebook's blog post, they go on to explain: "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."
As they still cannot definitively say what repercussions will be felt upon the iOS 14 launch, they can gather from testing data thus far that it could be as much as a fifty percent drop in revenue in terms of the Audience Network. You are of course taking away the personalization factor which is a huge part of ad success. They are trying to devise an array of solutions—both short and long term—to help Audience Network ad publishers navigate the launch of Apple's iOS 14.
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