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Facebook has said it could lose most of its revenue from ads on apps due to changes to Facebook’s operating system.
In the next iOS 14, apps will explicitly ask users for permission to collect and share data, meaning ads will no longer be able to simply “follow” users on apps outside of Facebook.
According to Facebook, such targeted users are eight times more likely to buy products.
But iOS 14 tests suggest “… more than 50% reduction in publisher revenue”.
‘Distant effect’
The Ience Dianes Network, which describes Facebook as “extending advertisers ‘campaigns beyond Facebook and other mobile applications”, works using identification codes to target advertising based on users’ “likes” and preferences.
IPhone users may already like this tracking.
But the users’ plan, which all users need to actively choose before being tracked, “can make the Aud Dianes network so ineffective on iOS 14 that it makes no sense to offer it,” Facebook said.
In a blog post, Facebook warned advertisers that they should “expect the audience network to decline financially effectively” and called for industry consultation on the changes, which it said would have “far-reaching effects” on the developer ecosystem.
Related topics
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Facebook
- Advertising
- Internet privacy
- Apple
