New Privacy Changes from Apple will mess up the Online Ads: Facebook

Facebook is unhappy with the new privacy rules of Apple and is trying to push it back.

Apple is going to bring in new privacy changes in its devices which can affect the online ads and marketing on social media apps like Facebook adversely. Apple is soon going to make apps take permission from the users when they are collecting the data and the devices they are using. This way the apps will get to follow the users around on the internet irrespective of their devices.

However, this can be an issue for the giant social media network Facebook as it will reduce the amount apps can earn by advertising through Facebook. The company says that it expects less impact on its advertising revenue when compared to the ad-supported businesses that usually rely on the audience network to promote their apps.

The audience network usually allows these app advertisers to place their ads anywhere else on the internet. On the other hand, Apple says that this new privacy policy with iOS 14 will help in protecting the user’s data. This new update will ask users to collect and share data using a unique code that can be identified on their iPads and iPhones. This update will be coming in the fall.

Facebook said that it won’t be collecting identifiers for the advertisers on iOS 14 devices and also asked the companies to create new advertising accounts that will be targeting the iOS 14 users. This way the platform will get to comply with the privacy policy of Apple.

Amidst all this, the stock price of Facebook jumped up to 5% and the market analyzer Michael Pachter from Wedbush stated that the new Apple rules will support the target advertising system of Facebook. With the new update, advertisers will eye on the things that they have an idea about i.e., Facebook targeting.

Pachter also said that investors are likely to think that the competitive advertisements on Twitter and Snap will take a blow while giants like Facebook and Google will benefit from this update.

He said an example to explain this situation- if a user searches for a particular phone on Amazon and then also search for it on Best Buy, the advertisers will know that the user is shopping around and will provide them with ads. But this is not going to happen with iOS 14 and users have to opt for these advertisements to get benefitted from it.

The ability to track people will be gone but Facebook is going to do it in its way. Dave Wehner from Facebook said that no one has an idea about this new update and how it will impact the market but this is going to make it harder for the app developers and advertisers.

He also added that the targeted advertisements are the lifeline for small businesses, especially in this pandemic.

Apple said that it wants to give feasibility and choice for the users on how they want to be tracked online by the companies. People like David Chavern are considering this as an annoying practice as Apple decides and the entire world has to follow it. Its negative impact on revenue in times like this is another big issue.