Impact of iOS 14.5 privacy changes on Facebook revenue
iOS 14.5 privacy

Impact of iOS 14.5 privacy changes on Facebook revenue

Former Facebook employees have explained how iOS 14.5 privacy changes will affect Facebook’s advertising business.

Apple has always valued the privacy of its users, and this has become even more important since the release of iOS 14. Apple Mobile OS is hosting new features to enable users to determine how independent applications can use their data. Facebook has been critical of Apple since the introduction of the changes, and as 9to5Mac  writes, a number of former Facebook employees have recently explained how iOS changes in privacy are affecting the company.

Apple is working on a feature called Application Tracking Transparency (ATT), which will be available to all users next spring with the release of  iOS 14.5 . When ATT is enabled on iPhone, apps can not track users when using other apps and websites without their direct permission. Facebook is one of the giants of the online advertising industry and earns a lot of money this way. For this reason, it is obvious that this company has a lot of opposition to ATT.

A CNBC reporter recently interviewed a number of former Facebook employees to ask them how Apple’s privacy policies  affect Mark Zuckerberg .

Facebook, like other advertising platforms, uses a feature called “Interaction Monitoring” to find out how many users have seen the ad and have not interacted with it immediately; But later they made a purchase related to that banner ad. According to CNBC, after registering a purchase, the Advertiser Identifier Store (IDFA) registers the user and shares it with Facebook. Facebook then checks to see if that user has seen the ad. This shows the store that Facebook ads have been effective.

IDFA makes a lot of information available to Facebook and advertisers about the user who has interacted with the ad. Based on this information, advertising companies determine what ads to show to each user. Thanks to ATT in iOS 14, the user can voluntarily block their IDFA tracking by Facebook.

This makes it difficult for Facebook to determine whether its banner ad was effective. As a result, fewer companies are likely to turn to the Facebook platform to advertise on the web, and the company’s revenue will fall. Facebook is worried that it will lose its advertising customers and that these customers will use Google . Google Ads is currently the largest online advertising platform in the world.

Facebook has repeatedly launched various scandals to say that the new iOS 14 system is hurting small businesses; Because many of them go to the Facebook advertising platform to promote their products and services. But a former Facebook employee claims the changes may not affect small businesses; Because they typically operate in certain cities or states. The limited user community allows small businesses to identify the target audience for advertising without the need for IDFA.

CNBC writes Henry Love , a former Facebook employee, has said that the owner of a small coffee shop in Austin, Texas, for example, may not need much information to target his ads. Such businesses typically limit their targeting to relatively broad categories such as age range or specific zip code. This will show the business ‌ ads to Facebook users who are nearby.

“If you talk to a restaurant owner in any area and ask him what IDFA is, I don’t think any of them know what IDFA means,” says Love. “IOS changes are affecting Facebook on a large scale, not small business owners.”