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