David Wehner, chief financial officer of Facebook, said CNBC Today, the company is concerned that iOS 14 is having a negative impact on the way Facebook operates its ads. As the company’s revenue comes largely from advertising, any attempt to obstruct such a practice will harm Facebook’s business.
We’re still trying to figure out what these changes will look like and how they will impact us and the rest of the industry, but at the very least, it will be more difficult for app developers and others to grow using tools. ads on Facebook and elsewhere.
Wehner refers to a new option included with iOS 14 that allows users to turn off tracking between apps. Developers use trackers to identify each user in different apps and websites so they can target ads based on what you are accessing on your device. Even if users leave this option enabled, third-party apps will need to request permission to track and collect your personal data.
Here’s how Apple describes this feature:
Apple asks app developers to ask permission before tracking you or your device on apps or websites they don’t own in order to target advertising, measure your actions because of advertising, or share your information with data brokers.
David Wehner argues that Facebook’s advertising platform is essential for small businesses because anyone can easily promote their products and services to millions of people. The company expects revenue growth of 10% for the third quarter, but Facebook now expects a decline in the fourth quarter once iOS 14 becomes available to the public this fall.
However, it is not clear how Apple will check if these apps are collecting personal data through other apps and websites.
“We believe that Facebook and targeted ads are a lifeline for small businesses, especially in the days of Covid, and we are concerned that aggressive platform policies will reduce that lifeline to a when it is so essential to the growth and recovery of small businesses. Wehner said.
If you’re already using iOS 14 beta, you can find the new tracking option by going to the Privacy menu in the Settings app.
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