Apple’s privacy changes will affect the social network’s advertising business.
Facebook and Apple collide over the impact that the iPhone maker‘s privacy model can have on the digital ad business.
The social network has warned in a post on its blog that the privacy changes that Apple’s new operating system will include will harm the business of personalized advertising, potentially reducing the income of those application and game developers who depend heavily on these types of ads.
Apple will incorporate in its operating system iOS 14, which will arrive this fall, a series of novelties with which it seeks to protect the privacy of its customers. With the new operating system, applications will not be able to track iPhone users using the device identifier unless they give their explicit permission.
This unique identifier for each device is what enables the data collection and tracking necessary for advertisers to display targeted advertising. Industry experts estimate that many iPhone users will not grant this permission.
Facebook will be one of the companies affected by these changes. The company led by Mark Zuckerberg has an advertising network (Audience Network) that allows advertisers to launch campaigns outside of the social network platforms, allowing them to show targeted ads when users browse other websites and applications from their mobile. The measure will also affect Google’s network, called AdMob.
Facebook says that, according to its estimates, Apple’s privacy changes could reduce the revenue of companies that use the Audience Network to sell advertising space by 50%. The inability to display personalized ads will reduce the effectiveness of campaigns, which will impact those companies that live on the income generated by this type of advertising.
Facebook does not disclose what percentage of its business relies on the Audience Network, but in its latest earnings release it warned that increasing restrictions on collecting and tracking user data could “significantly” impact future growth in its advertising revenue.
The Facebook post is another chapter in the tense relationship between the two companies. Apple has criticized the collection of data from the social network in the past, while Facebook defends the advertising model that supports the offer of free services such as those of the company.