Facebook Pronounces Apple’s IOS 14 could hamper its ad revenue

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Apple’s upcoming iOS 14 brings more features concerning the user’s data security and integrity, which is expected to roll out later this year officially. Although, the developers have released its Beta version. 

In iOS 14, Apple has instigated a plenteous of privacy-centric attributes. The clipboard data, location data, microphone, etc. are under stringent need-based access. 

An exordium of the new feature:

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IOS 14 instituted a gamut of features to let users control the data type each app can access, including location data & clipboard notifications. An option to disable tracking between apps has also been instigated.

 Besides having a great impact on users, It is also anticipated that these features could hurt the social network’s ad business. 

Grounds for advancing iOS :

Recently, some mobile apps available on iOS platforms have been found to be misusing app permissions and accessing user’s private data, stealing and transmitting it in an unauthorized manner. 

Apple’s assurance for more satisfactory privacy on iOS has mostly revolved around the compatibility between the iPhone’s OS and it’s admirable as well popular counterpart Android. The company has addressed how iOS is a safer bet than Android. They also discoursed why privacy is at the apex of everything that an iPhone is commanded to do. 

With the latest iOS 14, Apple is raising the bar by going after wretched, dishonest, and unscrupulous apps. 

Apple’s elucidation for the new feature :

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Apple requires people to actively opt into ad tracking with the update to its mobile devices. From iOS 14, Apple would require app developers to ask for permission before tracking users and users’ devices through websites and apps they do no own. They do so in order to target the users with the right ads, to measure their actions through these ads and then, to share/ sell the information with data brokers. 

Until now, a device ID number named as IDFA is used by advertisers to better target ads and estimate their effectiveness. 

Now, Apple users will be asked whether they want to let the app developers to track their activity across websites and other apps or not? Before being tracked, the user will receive a notification saying, “XYZ( app) would like permission to track you across the websites and apps owned by other companies. Your data would be used to deliver personalized ads to you.” 

The users will have to choose between ” Allow Tracking” or “Ask App Not To Track.” The users can find the new tracking option by accessing the ‘Privacy’ menu in the Application settings.

iOS 14 gives users to opt-in to tracking but most users are expected to out. As they would not like to be tracked. 

Facebook CFO’ repercussion:

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Regarding iOS 14, Apple’s Resolution to improve the privacy and security of users as well as to double down on apps that track you across services has made some firms worried especially Facebook

David Wehner, Facebook’s Chief Financial Officer mentioned in his convention with CNBC’s tech reporter, that upcoming changes to Apple’s iOS 14 operating system could hurt the social network’s ability to target ads to users. Furthermore, he added, We are still trying to understand how these changes will look like and how they will impact us and the rest of the industry. It’s going to make it harder for app developers and other associates to grow using ads on Facebook and elsewhere. 

Facebook is one of the most affected social networking apps that raised this concern as the change is expected to hinder Facebook’s advertising staring in the third quarter with a more pronounced effect in the fourth quarter. For the third quarter, the company forecast revenue growth is about 10% beating analysts’ expectations of 7.9 % growth. 

David Wehner argues that Facebook and targeted ads are a lifeline for small businesses, especially during the COVID-19 pandemic. Facebook’s advertising platform is critical for small businesses as anyone can easily promote their products and services to millions of people. Facebook is concerned that aggressive platform policies will cut at that lifeline at a time when the economy is gravely disrupted. Hence, this lifeline is so essential for small businesses ‘ growth and recovery. 

Once iOS 14 becomes available to the public, it will have a negative impact on how Facebook do their advertisements.  Any hindrance to the practice will hurt Facebook’s business of operating its ads since a bulk of the company’s revenue comes from ads. 

Wehner also reiterates the options of disabling the tracker. It is a vital tool used by developers for posting targeted ads. When this is disabled, it will become hard for developers to determine target space and audience where they can appropriately place their advertisements. 

Wehner also reiterates the options where users can disable the tracker, which is a vital tool used by developers for where they can post targeted ads. When this is disabled, it will be hard for some developers on where to appropriately place their advertisements since they cannot determine their target space and audience. If this option is left enabled then also third-party apps will have to ask permission for tracking your personal data. 

Critiques :

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Apple’s privacy strategy will have a great impact on users having more transparency in boosting their privacy. 

As Apple’s model is not funded by ads like Facebook and Google’s are, thus it can afford to hinder ad business and hurt advertisers. At ESET, Jake Moore, a cybersecurity specialist advocated that such ad companies can make a tremendous amount of money with the acquired data from targeted advertising. Nonetheless, with an enlarged group of concerned people, Apple is clearly commencing to see the value in Safeguarding its users. 

This could become more magnanimous and pervading, he warned. He further added that once Apple decides to encompass a new & specific attribute, other corporations would also tend to echo their movements follow the trend by reducing their data tracking or by offering an opt-in function. 

A new article issued in The Information detailed how Facebook has met with its gaming companies, key advertising companies to try to ease and comfort their concerns. Citing Exec, a gaming company that has met with the firm explained how it assured an important group of customers. It also included how Facebook employees have been engaged to extract more information about the upcoming Apple shift. 

It seems that this launch is going to impact spend on app install adverts in iOS 14 which asked people directly to download an app or game. It would also make a pronounced effect to the app developers which requires more detailed targeting data. 

 In the case of Facebook gaming customers, The Information stated that last year, 68% of all App Store revenue was from games; citing data from Sensor Tower. It’s also possible that Apple could even lose out. 

Apple’s soon-to-launch iOS 14 includes major new features that help users improve their privacy and security. But Apple’s decision to double down on apps that track you across services in iOS 14 has some people very worried—especially Facebook.

The Peroration :

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Apple will hurt advertisers but from the user standpoints, this strategy is great. The strategy will aid Apple to differentiate itself as the brand caring about the privacy. Although Facebook and others are right to be concerned as this move is getting more aggressive. On the other hand, the users will have transparency in deciding which services they want to avail and which they want to avoid. As well, this will also make them able to actively decide about the trustworthiness of the services. 

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