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December 21, 2020
Facebook last week published a new Web page and ran two full-page ads in major newspapers charging that Apple’s iOS 14 privacy changes will harm not just small businesses, but the Internet experience as a whole.
Apple’s changes, scheduled for early 2021, will require developers to request permission to collect data and track users through mobile apps and websites on an iPhone or iPad. Digital advertising companies expect most users to refuse to grant such permission.
In your second ad, Facebook said the updates “will change the Internet as we know it, for the worse.”
Facebook contends that “your favorite cooking sites or sports blogs” are free because they are supported by personalized ads, and the changes would force websites and blogs to start charging subscription fees or add more in-app purchases.
But Facebook’s main focus last week was the potential impact on small businesses. The ad also cited internal Facebook data to state that without personal ads, the average small business advertiser can see a more than 60 percent reduction in their sales for every dollar they spend.
in a blog postDan Levy, vice president of ads and business products at Facebook, argued that the Internet has made marketing “accessible and affordable” for entrepreneurs and other smaller businesses. He wrote: “If these changes are made, established companies with large marketing budgets will have the advantage, once again, of taking us back to the age of television advertising. But the big company that benefits the most is Apple. “
Apple’s motivation, he argued, is subscription or in-app payments from a payment model.
Apple threatened last week to remove applications from its App Store if they do not comply with the privacy function. Apple has reiterated that its drive for greater transparency it just puts users of Apple products first.
CEO Tim Cook wrote in a tweet Thursday night: “We believe that users should be able to choose between what data is collected about them and how it is used. Facebook can continue to track users through apps and websites as before, the app tracking transparency in iOS 14 will only require that they first ask for your permission. “
The skirmish comes as Facebook, Apple, Google and Amazon face increased scrutiny over market power.
DISCUSSION QUESTIONS: Should retailers be more supportive of Apple or Facebook in companies’ battle for transparency of targeted ads? What likely changes should retail prepare for?
“Privacy is not dead and is about to reemerge as an issue. It’s a great time.”
