Privacy features in iOS 14 cut revenue from Facebook ads by half

Facebook acknowledged on Wednesday that Apple's upcoming iOS 14 will result in a more than 50 percent decline in Audience Network ad activity on Facebook. Previously, Facebook had warned that the iOS 14 system would significantly affect its advertising activity, but the company’s blog post that was uploaded on Wednesday only specified the extent of this effect, as the Facebook Audience Network will allow smartphone software developers to provide advertisements within the application, and that these advertisements will target users based on their data on the Facebook site.

However, today advertisers can use a unique device number, called IDFA, to better target ads and estimate their effectiveness. On the other hand, for the iOS 14 operating system, the application that wants to use these identifiers will ask users to opt-in to tracking when they run the application for the first time. Facebook also added that its applications will not collect IDFA information on the iOS 14 operating system.

Facebook stated the number of people viewing ads, and said that more than a billion people see at least one Audience Network ad every month, although many Facebook users may use Android phones and will not be affected by this new change. It is worth noting that Facebook derives almost all of its profits from advertisements, but it is not known what percentage is attributed to the use of the Audience Network versus the ads that are displayed on Facebook and other features.

Contents of the topic Toggle Apple’s launch date for the iOS 14 operating system Facebook’s response to the social network’s post Apple’s launch date for the iOS 14 operating system On the other hand, Apple did not mention the launch date for the iOS 14 operating system, but it is expected to be launched during this year, as the social network  

By publishing a blog outlining the steps it will take to ensure its media activity complies with Apple’s requirements. These steps will also determine the effectiveness of Facebook and advertisers in targeting ads to users of both the iPhone and iPad. Facebook responded to the social network's post. Facebook explained through the blog post that they are aware that this system may greatly impact the ability of advertisers and publishers to generate income through Audience Network on the iOS 14 operating system, and despite our best efforts, it may make Audience Network very ineffective on the iOS 14 operating system, and that it does not make sense to introduce it on the iOS14 operating system in the future.

Facebook also explained that since there are many uncertainties and unknowns at this stage, it is difficult to determine the primary impact on both publishers and developers during this stage. This is because when personalization was removed from mobile ad installation campaigns, we witnessed in this test a significant decline of up to 50 percent in Audience Network publisher revenues. In fact, the impact on Audience Network on iOS 14 may be much greater, so we are working on short- and long-term strategies to support publishers through these changes that have occurred, as Facebook  

Its shares closed more than 8 percent higher despite its announcement. #FacebookRevenues #iOS14