Will Apple's Upcoming iOS 14 Hurt Facebook's Advertising?

By: First Union | Date:

marketing

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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First Union Lending LLC is a dually licensed Lender/Broker with its main offices located at 4900 Millenia Blvd First Floor Orlando, FL 32839. First Union Lending LLC and its ads are meant for continental United States, including Alaska and Hawaii small business owners. Business Loans offered by First Union Lending LLC have varying rates and terms that can range from 30 - 120 payments and all rates and terms are based on eligibility of the business and its owners. The actual terms are based on credit, business history, industry, amount and terms. As an example, a $5,000 loan paid over 5 years at 8% would have a total repayment of $6,082.92 over the life of the loan. We use the latest encryption to protect sensitive information transmitted online, as well as run our own secure server network to ensure your information is protected offline as well.

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