In its latest announcement, Facebook says its online advertising will suffer on iPhones with the next iOS update. The company says Apple’s enhanced iOS 14 will disrupt its targeted advertising on iPhones. The note was directed to developers. Facebook hints at reduced earning for the community in the weeks to come. Apple is yet to comment on the matter.
First noticed by The Wall Street Journal, Facebook’s online advertising platform will suffer once the update rolls out globally. The iOS 14 update is expected to hit all iPhones globally in September, bringing hundreds of new features. Chief among those features is the enhanced privacy functions in several ways.
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With the new privacy features in place, Facebook’s Audience Network business will struggle with data collection. The service connects users’ Facebook activities with off-platform activities to serve ads. This allows Facebook to serve ads on other third-party apps. Hence, if you use Facebook, you will often see ads related to the content you are exposed to.
Apple has previously openly criticized Facebook’s approach to user privacy concerning its advertising business. Analysts say that Facebook’s Audience Network business has a size measurable in billions. With a large part of that suppressed by Apple, its business might suffer noticeably.
“Our ability to deliver targeted ads on iOS14 will be limited. As a result, some iOS 14 users may not see any ads from Audience Network, while others may still see ads from us, but they’ll be less relevant. The changes may render Audience Network so ineffective on iOS 14 that it may not make sense to offer it on iOS14 in the future,” says Facebook.
Facebook points at the reduced earnings for the developer’s community in the coming days. At a time when the world is getting in terms with the COVID-19 pandemic, Apple move may hinder revenues for those who make money off advertising via Facebook services.
iOS 14 goes for a complete overhaul
Earlier in the year, Apple announced iOS 14 with several changes. Apart from visual overhaul with new widgets and an app drawer, there are new privacy features. For example, when an app has access to your microphone or camera, iOS 14 will indicate that via the status bar. It has also hardened its policies for the Safari browser. iOS 14 can give out a vague location to third-party apps in order to safeguard your privacy.
Apple will release the iOS 14 update most possibly in September as a public release. 2015’s iPhone 6S and newer models will get the update as a free upgrade. Apple is also bringing most of these features to the iPad OS 14 later in the year.
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