iOS 14 introduces a range of features to allow users to control what data each app can access, including clipboard notifications, and also an option to disable cross-app tracking. These features are already causing problems for some developers, and Facebook in particular is concerned about its advertising business prior to these changes.
Facebook CFO David Wehner said CNBC Today the company fears that iOS 14 will have a negative impact on how Facebook operates its ads. Since the company’s revenue largely comes from the ads, any attempt to hinder such a practice will harm Facebook’s business.
We’re still trying to understand what these changes will look like and how they will affect us and the rest of the industry, but at least it will make it harder for app developers and others to grow using ads on Facebook and elsewhere..
Wehner refers to a new option included with iOS 14 that allows users to disable cross-app tracking. Developers use trackers to identify each user in different applications and websites so that they can target ads based on what you access on your device. Even if users leave this option enabled, third-party applications will still have to ask permission to track and collect their personal data.
This is how Apple describes this feature:
Apple requires app developers to request permission before tracking you or your device through non-proprietary apps or websites to target advertising, measure your actions due to advertising, or share your information with data brokers.
David Wehner argues that Facebook’s advertising platform is critical to small businesses, as anyone can easily promote their products and services to millions of people. The company forecasts 10% revenue growth for the third quarter, but Facebook now expects a decrease in the fourth quarter once iOS 14 is available to the public this fall.
However, it is unclear how Apple will verify whether these applications are collecting personal data through other applications and websites.
“Our view is that Facebook and targeted ads are a lifeline for small businesses, especially in the Covid era, and we are concerned that aggressive platform policies will be reduced to that lifeline at a time when it is so essential to the growth and recovery of small businesses, “Wehner said.
If you’re already running iOS 14 beta, you can find the new tracking option by accessing the Privacy menu in the Settings app.
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