Facebook Warns Apple's New Privacy Rules To Severely Hurt Its Ad Service

(RTTNews) - Facebook has warned that Apple Inc.'s planned changes to iOS 14 will disproportionately affect Audience Network due to its heavy dependence on app advertising.

Facebook' Audience Network helps developers and publishers monetize their mobile apps and websites by showing highly targeted ads that match the interests of their users.

Apple in June announced certain updates to iOS 14, that, among other changes, require apps to ask users for permission to collect and share data using Apple's device identifier.

In a blog post aimed at its developers and publishers, the social media giant said that Apple's planned policy changes will impact the businesses' ability to market themselves and monetize through ads on iOS 14. The company issued certain recommendations to help partners prepare for the policy change, while developers await more details on this policy.

The company said, "While it's difficult to quantify the impact to publishers and developers at this point with so many unknowns, in testing we've seen more than a 50% drop in Audience Network publisher revenue when personalization was removed from mobile app ad install campaigns."

Following these changes, Facebook, which usually uses identifier for advertisers or IDFAs to help target ads to specific devices, said it will not collect the IDFAs on its own apps on iOS 14 devices.

Facebook will also remind users that they have a choice about how their information is used on Facebook. Further, its Off-Facebook Activity feature will allow users to see a summary of the off-Facebook app and website activity businesses send to Facebook and disconnect it from their accounts.

The company will release an updated version of the Facebook SDK to support iOS 14. It will will provide support for Apple's SKAdNetwork API, which limits the data available to businesses for running and measuring campaigns.

According to Facebook, Apple's updates may render Audience Network so ineffective on iOS 14 that it may not make sense to offer it on iOS 14.

However, the company expects the planned changes by Apple would make less impact to its own advertising business.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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