Facebook expects profits to be hit by iOS 14 ad tracking restrictions

Posted:
in General Discussion edited August 2020
Facebook representatives have reportedly reached out to key advertisers about how Apple's forthcoming ad tracking limitation in iOS 14 will affect them all.

Apple's forthcoming iOS 14 will require users to agree to ad tracking
Apple's forthcoming iOS 14 will require users to agree to ad tracking


Announced as a privacy feature, Apple's forthcoming iOS 14 will require users to choose whether or not to allow ad tracking. Facebook reportedly expects a significant number of users to refuse it, and has been trying to work with advertisers concerned at potential loss of revenue.

Ad tracking is the feature that lets an advertiser know that someone buying a product from a certain place online, was driven there by an ad in, for instance, a game. To facilitate it, Apple has a random device identifier tag called an IDFA (Identifier for Advertisers) which lets companies track the effectiveness of ads without gaining a user's personal data.

According to The Information, Facebook staff have been meeting with mobile game firms, one of its key sources of advertising revenue. These discussions are apparently primarily about hearing the firms' concerns rather than finding some specific way to mitigate the potential loss.

Reportedly, some of the firms are expecting to benefit from the change, however. That's because while Apple will require apps to request permission to track them, it will allow the developers an explanatory screen.

"Advertisers and app developers who offer clear and compelling value to users for sharing their IDFA may end up with far superior opt-in rates," Matt Littin, CEO of gaming rewards company Lootcakes told The Information.

Facebook declined to talk to the publication about the meetings, but a spokesperson referred to previous comments. Facebook's Chief Financial Officer Dave Wehner said in July that iOS 14 is "going to make it harder for app developers and others to grow using ads on Facebook and elsewhere."

Apple uses IDFA for its own advertising purposes. And the changes coming to iOS 14 have also angered advertisers in Europe.

Apple is expected to release iOS 14 in September or October. Based on previous years, it's likely that the majority of active iOS users will quickly update.
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Comments

  • Reply 1 of 21
    Poor poor Facebook...
    Ofercat52rob53viclauyycdavgregwatto_cobra
  • Reply 2 of 21
    Good.

    I hope F*c*book goes out of business.
    cat52rob53macseekerdavgregOferp-dogfred1watto_cobra
  • Reply 3 of 21
    You have to feel terrible for those poor advertisers during the old days when they couldn't know who was hearing their ads on the radio, seeing their ads on TV, or reading their ads in the paper.
    Nikon8cat52rob53bonobobviclauyycwatto_cobra
  • Reply 4 of 21
    Good. Long may it continue.
    cat52rob53p-dogdysamoriawatto_cobra
  • Reply 5 of 21
    rob53rob53 Posts: 2,720member
    I just don't care about social media. Facebook needs to have an income to pay for its programmers and servers but it's time they find a different income stream. 

    I do use youtube for all my news information and I know advertising clicks helps youtube creators stay in business but youtube advertising is happening a whole lot more than it should. I pay for some channels but even then I get advertising. Youtube wants $12/mo for ad free and youtube music, which I don't need. It upsets me they got rid of the lower level of just ad-free, which I would have paid for. 
    Beatswatto_cobra
  • Reply 6 of 21
    rob53rob53 Posts: 2,720member
    I just don't care about social media. Facebook needs to have an income to pay for its programmers and servers but it's time they find a different income stream. 

    I do use youtube for all my news information and I know advertising clicks helps youtube creators stay in business but youtube advertising is happening a whole lot more than it should. I pay for some channels but even then I get advertising. Youtube wants $12/mo for ad free and youtube music, which I don't need. It upsets me they got rid of the lower level of just ad-free, which I would have paid for. 
  • Reply 7 of 21
    gatorguygatorguy Posts: 23,301member
    One sentence in the article mentions "Apple uses IDFA for its own advertising purposes.", and I wasn't sure what that meant. Here's the explanation:

    The Identifier for Advertisers (IDFA) is a random device identifier assigned by Apple to a user’s device. Advertisers use this to track data so they can deliver customized ads based on a basket of demographic information. Rather than using names the IDFA is used for tracking and identifying a user without revealing personal information such as a specific person's real name, address, email etc.. In other words the user is anonymized as far as any advertiser is concerned. (The Android equivalent to the Identifier for Advertisers is called a GPS ADID, Google Play Services ID for Android, also anonymized)

    That numerically-linked data represented by the IDFA can be used to discover information such as which in-app things a user triggers, or identify when users interact with a mobile ad, so IDFAs become important because they are an accurate way for companies paying for an ad to track iOS users interactions. With IDFA assigned to a single unique device, advertisers can have greater certainty about the specific qualities of that user and whether the presented ad leads is clicked on. It's a widely used method of identifying how effective that ad is and whether the ad spend is effective.

    So while IDFAs are one of the most reliable ways to track an advertising campaign on iOS, users are increasingly opting out of using it ever since Apple introduced a way for users to indicate that they didn’t want to be tracked. By clicking on "limit ad tracking" or LAT anonymized user information would be left blank, and as such those people can’t be shown targeted ads. Roughly 20% of iOS users have enabled LAT.

    So there you have it. Reading between the lines it looks like Apple will continue to use IDFA for their own advertising and tracking efforts on iOS, but outside companies will be blocked from accessing it? That's a question and not a statement.

    edited August 2020 muthuk_vanalingamviclauyyc
  • Reply 8 of 21
    I have, as many here have, repeatedly said that if these trackers weren’t as intrusive and stupid as they are (bombarding me with often useless subsequent ads strewn all over a page that I am browsing based on my past browsing history — AI is culprit #1 in this travesty) I would have fewer issues with it. 

    If companies like FB and Google are unable to control that, I could care less about blocking these fools. I will use this iOS 14 feature to block them permanently. 
    watto_cobra
  • Reply 9 of 21
    gatorguygatorguy Posts: 23,301member
    rob53 said:
    I just don't care about social media. Facebook needs to have an income to pay for its programmers and servers but it's time they find a different income stream. 

    I do use youtube for all my news information and I know advertising clicks helps youtube creators stay in business but youtube advertising is happening a whole lot more than it should. I pay for some channels but even then I get advertising. Youtube wants $12/mo for ad free and youtube music, which I don't need. It upsets me they got rid of the lower level of just ad-free, which I would have paid for. 
    Personally I have no issue paying for my content with dollars rather than data if given the option. $12 to me is a relative pittance to avoid a page full of ads and pre-rolls for a service I have a demonstrated need for along with optional free-time entertainment. 
  • Reply 10 of 21
    rob53 said:
    I just don't care about social media. Facebook needs to have an income to pay for its programmers and servers but it's time they find a different income stream. 

    I do use youtube for all my news information and I know advertising clicks helps youtube creators stay in business but youtube advertising is happening a whole lot more than it should. I pay for some channels but even then I get advertising. Youtube wants $12/mo for ad free and youtube music, which I don't need. It upsets me they got rid of the lower level of just ad-free, which I would have paid for. 
    The ad is super annoying to me. So pay for YouTube is a no brainer. If you are able to find someone to share the family plan, it will be a lot cheaper. Also, with YouTube premium, you can pay video in background without video, very useful for taking show.  
     
    I rarely get my news from YouTube. The way YT send you the next video is highly filtered. If you like apple, you will hardly get any video about orange or pear. So it is extremely one sided.
  • Reply 11 of 21
    davgregdavgreg Posts: 921member
    What is rarely mentioned is how much data use these trackers suck up from your plan. They are using data you pay for to digitally stalk you and sell the info for money to blitz you with ads you do not want.

    watto_cobra
  • Reply 12 of 21
    Boo boo, FaceCrook. Will have to find another sinister scheme to make up for that lost revenue. And I’m sure that you will...
    watto_cobra
  • Reply 13 of 21
    AppleishAppleish Posts: 407member
    Good. PutinBook should move to Russia.
    watto_cobra
  • Reply 14 of 21
    MplsPMplsP Posts: 3,432member
    gatorguy said:
    One sentence in the article mentions "Apple uses IDFA for its own advertising purposes.", and I wasn't sure what that meant. Here's the explanation:

    The Identifier for Advertisers (IDFA) is a random device identifier assigned by Apple to a user’s device. Advertisers use this to track data so they can deliver customized ads based on a basket of demographic information. Rather than using names the IDFA is used for tracking and identifying a user without revealing personal information such as a specific person's real name, address, email etc.. In other words the user is anonymized as far as any advertiser is concerned. (The Android equivalent to the Identifier for Advertisers is called a GPS ADID, Google Play Services ID for Android, also anonymized)

    That numerically-linked data represented by the IDFA can be used to discover information such as which in-app things a user triggers, or identify when users interact with a mobile ad, so IDFAs become important because they are an accurate way for companies paying for an ad to track iOS users interactions. With IDFA assigned to a single unique device, advertisers can have greater certainty about the specific qualities of that user and whether the presented ad leads is clicked on. It's a widely used method of identifying how effective that ad is and whether the ad spend is effective.

    So while IDFAs are one of the most reliable ways to track an advertising campaign on iOS, users are increasingly opting out of using it ever since Apple introduced a way for users to indicate that they didn’t want to be tracked. By clicking on "limit ad tracking" or LAT anonymized user information would be left blank, and as such those people can’t be shown targeted ads. Roughly 20% of iOS users have enabled LAT.

    So there you have it. Reading between the lines it looks like Apple will continue to use IDFA for their own advertising and tracking efforts on iOS, but outside companies will be blocked from accessing it? That's a question and not a statement.

    Another point is that although the IDFA/GPS ADID is nominally anonymous, Facebook and advertisers can piece together enough data so it is not truly anonymous. 

    I agree with the others - Facebook and other advertisers have engaged in slimy and intrusive practices and turned the public off to 'personalized' ads. They are reaping what they sowed.
    watto_cobra
  • Reply 15 of 21
    Good! What an annoying company!
    watto_cobra
  • Reply 16 of 21
    dysamoriadysamoria Posts: 3,430member
    Cry me a river.
    watto_cobra
  • Reply 17 of 21
    Rayz2016Rayz2016 Posts: 6,957member
    This isn’t my area of expertise, but it strikes me that one of the things that makes the iPhone a desirable platform to write apps for is that it has customers that actually buy stuff. Now, if there is no way to know if folk are buying stuff then there is no way of knowing if it’s a desirable platform to write for.  

    So I thought I’d do some reading. 

    Apple doesn’t want the ad platforms to use a unique Id to track its customers, so they’ve come up with an alternative: they will tell the ad network that a customer has clicked, but will not tell them who that customer is, or give them any way of tracking them. 

    Interested parties can get stats on engagement numbers, without knowing anything about who has engaged. 



    By the looks of it, the app registers ad networks, and the information includes the URL to post the conversion. The ad network posts a callback when it has received the info. Since Apple controls what info is posted, all the ad network gets is some basic info like “yup, there was an engagement with this app.”


    Apple isn’t just completely leaving advertisers up the creek without a paddle, however. After all, the company makes billions annually with its own ad network, Apple Search Ads, which is completely focused on mobile user acquisition on the iOS App Store.

    Advertisers who can’t track advertising effectiveness don’t remain advertisers for long.

    So Apple has been working on a new privacy-safe framework for mobile attribution — the science of identifying which ads drive what results — for the past two years. It’s called SKAdNetwork, and Apple just updated it.

    I think they will eventually get rid of the IDFA altogether, and they’re “encouraging” the ad networks and app developers to move to the new system as soon as possible (and it will involve some work for everyone), which they will because no one is going to click “yes” to being tracked across the internet.
    edited August 2020 watto_cobra
  • Reply 18 of 21
    mcdavemcdave Posts: 1,827member
    Anti-exploitative practices lawsuit coming Apples way!
    watto_cobra
  • Reply 19 of 21
    gatorguy said:.

    So there you have it. Reading between the lines it looks like Apple will continue to use IDFA for their own advertising and tracking efforts on iOS, but outside companies will be blocked from accessing it? That's a question and not a statement.

    If Apple would do that, that become a reason to sue for anti-competitive behavior. Oh - wait...
  • Reply 20 of 21
    Rayz2016Rayz2016 Posts: 6,957member
    mcdave said:
    Anti-exploitative practices lawsuit coming Apples way!

    No one is going to try to take them to court to force them to invade people’s privacy. 
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