October 22, 2021

Facebook Vs Apple: The Privacy News Of IOS 14 Will Impact Audience Network’s Business

The social media points the finger at the limitations of the new operating system to targeting and advertising measurements

 

 

Brands and publishers using Facebook ‘s Audience Network will see a significant impact in their monetization and advertising targeting capabilities as Apple’s new iOS 14 privacy changes come into effect.

This is the alarm launched by Facebook, which in a blog post underlines how some features of the new operating system of the bitten apple could have very negative effects on part of its business, the one relating to Audience Network.

But let’s go in order. At its developer conference last June, Apple announced a number of new features related to iOS 14 , including the requirement for app developers to obtain user consent if their app collects. a unique code of the device, the so-called IDFA . This is code that Apple randomly generates by assigning it to a single device, and that app developers then use for advertising targeting and campaign performance measurement across various programs and devices.

In particular, the Facebook Audience Network – which allows companies to place advertisements on third-party apps that have installed a special Facebook SDK – uses this code to match the data of the single Apple device to those of its users . A simple way, in short, to establish that the Facebook user “X” is the same person who uses the iPhone “Y”.

In the blog post, Facebook said that rather than asking users for permission to collect IDFA, its apps will no longer collect the code on devices running iOS 14 . The social network has not explained the reasons behind this decision, but it is possible to imagine that many users may deny consent to the acquisition of the code, which could make the way to segment advertising and measure its performance more uneven. At the same time, the social media released an updated SDK that limits the data available to companies for the delivery and measurement of campaigns.

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But what will be the impact of this decision? Facebook explains that brands will have to expect less ability to accurately target and measure campaigns . This will presumably lead to a reduction in CPMs for publishers and, consequently, “severely impact the ability of publishers to monetize via the Audience Network”. According to some tests conducted by the same social network, publishers could see up to a 50% decline in revenues , although Facebook warns: the real impact “could be even greater”.

Much more limited repercussions, on the other hand, will have on Facebook’s internal advertising business (that relating to its advertising spaces), which for targeting mostly refers to proprietary data.

“We are working on short and long term strategies to support publishers in addressing these changes,” added the social. Changes that could make Audience Network “so ineffective on iOS 14 that it may no longer make sense to offer it.”

In a separate blog post , Facebook then pointed the finger at Apple and its decision to place further stakes on the possibilities of advertising personalization. The social media said that the news of iOS 14 will have a negative impact on “many of our developers and publishers, in an already difficult period for the economy “. In fact, Apple is not new to operations aimed at ensuring greater protection of privacy, which however, on the other hand, have progressively reduced the ability of companies to target advertisements, making campaigns less effective.