What's at stake in Apple and Facebook ad privacy feud? - Join The Lights
- What’s at stake in Apple and Facebook ad privacy feud?
- Rohan Subhash
- No Comments
- January 20, 2023
Since then, Facebook has endured numerous scandals, it has alienated Democrats and Republicans and it has fought a never-ending battle against misinformation on its services. After the purchase is made, the retailer records the IDFA of the user who bought the jeans and shares it with Facebook, which can determine whether the IDFA matches with a user who saw an ad for the jeans. Facebook’s ad campaign against an upcoming change in the iPhone stands in sharp contrast to competitors like Twitter, Snap and Google, who are taking a more low-key approach.
When it rolls out, ATT will require developers to gain permission before tracking a user’s device advertising identifier, or Identifier for Advertiser tag. Users are automatically opted out of tracking by default, though they can allow services to leverage IDFA data by manually changing settings options or by interacting with a special dialogue box that appears when opening an app for the first time. Many spin classes charleston sc users are expected to opt for more privacy, leaving ad companies in search of new targeting technologies. Zuckerberg has been a strong critic of Apple’s latest privacy feature that provides app tracking transparency and is slated to debut with iOS 14.5 soon. The social media giant has claimed that this privacy feature could deal a huge blow to ad tech companies and hamper the growth of small businesses.
It also says that Apple is being hypocritical, because it will force businesses to turn to subscriptions and other in-app payments for revenue, from which Apple takes a cut. And it argues that sharing data with advertisers is key to giving users “better experiences”. In the case of Meta, Apple’s vision for a more private space doesn’t give it that window to become profitable as the great majority of its revenue comes from advertising. Advertisers would look elsewhere for their advertising needs if they can’t target certain groups with ads or accurately analyse how effective those ads are. Since Apple has committed to being a more safe and reliable company, it introduced ATT—making it available for the devices in April last year. But now, according to the latest reports, unlike Meta, other apps like Snap and Pinterest appear to be faring better in terms of adapting to the change, while Snap claims that its ad partners are adjusting well to the new system.
But for Apple, its fourth-quarter earnings report revealed that the privacy changes was profitable. Despite supply chain issues, the tech behemoth reported iPhone sales totalled $71.6 billion, up 9 per cent from the previous year. The smartphone manufacturer claimed an 11 per cent increase in revenue and a 20 per cent increase in profit. Amid rising concerns over online privacy, such an approach is expected to bring dividends to its owner. In Q3 2022, according to Canalysis’ report, the global smartphone market recorded its third consecutive decline this year, dropping 9 per cent year-on-year, marking the worst Q3 since 2014.
This could mean profit being rerouted back into publishers or other ad businesses that provide more advertising options to businesses, EFF argues. Have said could undermine its court case against Apple), instead Facebook has adopted the position of defender of a free and fair online ad marketplace. Alongside ATT, Apple deprecated its old IDFA technology, but it has introduced new frameworks to help advertisers, and they appear to be being adopted. Today, when a person makes a purchase on a retail website or app, that retailer can share the IDFA with Facebook. Facebook can then check to see whether that same IDFA saw an ad for that product on Facebook or Instagram and show the effectiveness of its ads. The new feature from Apple will block apps and websites from collecting and sharing an identifier called IDFA .
Meta claims that the hit from ATT is harming not just its revenue, but small businesses that rely on the company’s ad services to reach the appropriate customers. The feature, which was first made available as part of iOS 14.5 in April 2021, provides users with a pop-up window when they open an app that asks if they want the app to track their data. Tracking your activity is important for advertisers, because it allows them to send you targeted advertisements and determine how successful their advertising campaigns are. So if you are looking at a lot of pet-related websites, IDFA can help advertisers send you ads related to pet food or toys.
Apple’s announcement of iOS 14 —and the changes it would bring to device/user identification — was the latest blow to Facebook’s deteriorating relationship with the tech giant. Soon, iOS 14 will limit apps’ ability to leverage IDFA (Apple’s unique identifier for each consumer device) for the purpose of user tracking, targeting, and attribution between apps — starting in early 2021. Starting with iOS 14, users were given the ability to opt out of sharing their IDFA tag — a unique profile number those advertisers use for targeting on third party platforms like Facebook. A study from AppsFlyer in October found that 62% of iPhone users are opting out of sharing their information.
When Apple introduced the ATT feature, around 80 per cent of iPhone users enabled it, which resulted in a big loss in terms of revenue for these companies as they were not able to track users. The company told investors during its fourth-quarter earnings in January that the impact of Apple’s changes could start to affect Facebook’s business late in the first quarter. Apple’s new policy is not the only thing that is affecting the social media giant in terms of revenue. In a report, Facebook revealed that Apple’s new privacy feature for ads, macroeconomic challenges, low Daily Active Users are some of the factors that may have a negative impact on its growth. The company noted that there is also a shift of engagement within its products that don’t offer as much revenue as they get with Instagram’s News Feed and Stories. It suggests that people are now spending more time on Reels videos that generate less revenue.
If you want to know how much Facebook already tracks you on other sites and apps, there’s a helpful tool on Facebook. A new feature is being introduced to iPhones and iPads this week which is causing a huge rift between Apple and Facebook. Essentially, the Metaverse will be a digital universe where people can go to interact.
It’s a plan that Zuckerberg laid out publicly last spring, not coincidentally as Apple’s privacy changes went into effect. For the individual app marketers who rely on Facebook to acquire new customers and boost revenue — what’s next? Most platforms are still attempting to navigate this storm and identify ways to honor user privacy while delivering solutions for marketers of all sizes. In-app advertising has become a key portion of Facebook’s nearly $70 billion in annual advertising revenue.