New Apple iOS changes could hit Facebook revenues hard
10:01, 22 April 2021
How worried is Facebook? Apple is upping the online advertising ante with an iOS 14.5 software update, arriving next Tuesday. Some think the move could hammer Facebook's ad revenues.
Every iOS device has an Identifier for Advertisers (IDFA). The new iOS update will force apps to seek a device owner’s consent to take privacy data through something Apple calls App Tracking Transparency, or ATT.
Advertiser blow
Currently around 70% of iOS users share their IDFA details with apps. But Apple’s new mobile advertising move could force this down to as low as 10%, in some cases, some sources suggest.
If successful, the revenue consequences for Facebook could be profound. Without IDFA data, advertisers cannot track in-app or mobile game purchases, denying them the chance to target consumers' digital buying habits more precisely.
Apple's last major move in this area was in 2017 when it introduced the ability to block ads on its Safari browser.
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App Store gain?
Facebook and Google are currently the two biggest online ad players, though Apple has dug deep into this sector with search ads in its App Store.
“If Apple cripples mobile advertising, then the App Store becomes the primary discovery point for apps again, and Apple decides how people use our iPhones, Apple decides which apps are the most popular,” mobile ad expert Eric Seufert told the FT.
So, more upheaval for the online advertising model, not to mention gaming. Digital near-monopolies have increased concern over the public interest utility of mobile devices. This is the next twist in a very long war.
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