- Tram Ho
However, starting with iOS 14, apps that want to use this IDFA must obtain the consent of the user. If the user disagrees, personalized advertising will become less effective.
This means the activities of almost every company that relies on this code for personalized advertising, including Google, Twitter, Snap, … are affected, but why most of them are silent accept Apple’s policy, do not speak up like Facebook? CNBC interviews with several former Facebook employees have shown why Facebook is afraid of Apple – or rather, the new privacy feature on iOS 14 – so much.
The biggest impact of this update is its ability to measure conversions. This metric is used by advertising agencies to determine the effectiveness of an ad campaign, how many people have viewed the ad and how many have purchased from it.
No longer able to measure the effectiveness of their ad campaigns, advertisers will turn to other advertising services and applications that help them know the exact return their ad campaign brings – a large chunk of their budget. That would go to Google – instead of Facebook.
On the other hand, changes to IDFA usage on iOS 14 are also damaging Facebook’s Audience Network. The network provides ads for non-Facebook apps, and they use IDFA codes to determine which ads are most relevant to users based on their Facebook data.
But if the user doesn’t let the app use IDFA, the personalization capabilities Facebook builds will become unsuitable for applications outside of the corporate ecosystem (including WhatsApp, Instagram, Facebook, Messenger. ). In August last year, Facebook admitted that iOS 14 could reduce Audience Network ad effectiveness by 50%.
The new iOS 14 update will no longer allow arbitrary apps to use IDFA codes on iPhones and iPads.
While the vast majority of Facebook’s revenue comes from advertising, the company’s Audience Network-based business accounts for only about 10% of the company’s total revenue, according to CNBC’s sources.
But not only negatively impacting Facebook’s business, the new privacy feature in iOS 14 also causes Facebook to lose valuable data it collects from iPhone users when they are not using apps. belongs to the company ecosystem.
With such great influences, it is not difficult to understand why Facebook is so angry with Apple. Meanwhile, their peers in the online advertising industry are quite calm with the new features in the upcoming iOS 14 update. Even CFO Twitter also believes that the changes will bring many benefits for them as well as users.
Source : Genk