Apple’s new iPhone update is bad news for Facebook

By: |
August 27, 2020 11:15 AM

Apple had announced iOS 14 in June this year, and the complete rollout of the update is expected in the coming months.

Apple's iOS is the second most popular operating system worldwide.Apple’s iOS is the second most popular operating system worldwide.

Facebook vs Apple: Apple’s new iOS 14 update will significantly curtail Facebook’s ability to provide targeted ads to iPhone users. The social media giant has informed that Apple’s iOS 14 update would place additional restrictions on the way apps track user data, and that would make it hard for Facebook to serve them with targeted ads. Facebook’s Audience Network platform, which allows advertisers to target their audience even when they are on non-Facebook apps, is expected to be most severely affected due to these changes. Facebook said that Apple’s update could affect Audience Network so severely that it might be redundant to offer the platform on iOS 14 at all.

Facebook said that during testing, they found that there might be a whopping 50% drop in revenue from Audience Network due to the new Apple update, and added that the actual impact could be more. It did not, however, reveal the size of the Audience Network service other than saying that it worked with over 19,000 developers and publishers and that it paid “billions of dollars” in 2019.

Explaining its course of action for iOS 14, Facebook said that it would stop collecting identifiers for advertisers on its own apps for devices running on the new Apple update. It added that it would also limit the user data that advertisers would be able to gather using Facebook’s own services. Collectively, these measures would make it difficult for advertisers to track the activities of users of iOS 14.

Facebook asserted that these changes were not something the social media giant wanted to make on its own, but was forced to do so due to Apple’s move.

Apple had announced iOS 14 in June this year, and the rollout of the update is expected in the coming months. It is currently available for public in beta. Apple’s iOS is the second most popular operating system worldwide, second only to Google’s Android.

A major component of Facebook’s business model is revenue from advertising and its targeted ads have time and again been part of controversies. On the contrary, Apple has always reasserted its commitment to the protection of user data and privacy, and has also targeted Facebook for its data-collection drive to run its advertising campaigns.

Facebook added that its decisions could change in light of any new information that Apple would provide regarding the new iOS, saying that it was awaiting further guidance from the smartphone giant.

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