Apple, the giant technology firm has recently launched iOS 14 software update and it will be rolled out to its users globally in a few months. Due to the latest software update of Apple, the social media giant Facebook is worried. The popular social networking platform says that the iOS 14 update might severely impact its business. Apple has announced that there will be certain changes to the upcoming iOS 14 software during the annual developer conference organized in June.
At the conference, the company also disclosed that the modifications include a change to a unique code associated with each device called IDFA [Identification for Advertisers]. Earlier, Facebook and some other app developers have accessed IDFA to assist target users with relevant ads. This code also helps in maintaining a track of the ad performance across various devices.
The smartphone manufacturer must design it in such a way that the users can get a warning label before gathering IDFA information on iOS 14. It also needs that users must have a choice to share their info without any forceful update. The maximum number of experts from the advertising industry contemplate that this feature will notably diminish developer access to IDFA information.
Facebook’s Complain over Apple’s iOS 14 Software Update
Facebook thinks that the latest version of iOS 14 comprises one feature that can spoil the business model of the social networking platform, particularly among the iOS devices. After the official launch of the latest version of Apple’s operating system software, the company will provide a choice to the users to make a decision on whether to get tracks through apps using a unique identifier or not.
On Wednesday, the social media giant Facebook clarified that it won’t gather IDFA through its apps on the devices that run iOS 14 software updates. The social networking platform said that this decision might ‘severely impact’ Audience Network. Facebook released a blogpost to mention the changes that the iOS 14 feature will trigger. The blogpost reads, ‘For developers and publishers using Audience Network, our ability to deliver targeted ads on iOS 14 will be limited.’
It further stated that with this move of Apple’s iOS update, some of the iOS users may not be able to see any ads from Audience Network. On the other hand, some other iOS users might see only less number of relevant ads. This will show a major impact on the revenues of app developers and publishers in the field of ad networks on iOS devices.
The social media giant claimed that there will a revenue decline of 50 percent ‘when personalization was removed from mobile app ad install campaigns’ at the time of testing. It also warned that this initiative will show a greater impact in real-life situations as well. Facebook also said that it anticipates ‘less impact’ on its advertising business. To target its users within Facebook and Instagram, the company doesn’t need device-level details. For instance, both these platforms hold the phone numbers and emails of most of its users.
Reason Behind Apple’s Move
The significant changes that Apple has brought through the latest software update are part of the company’s ample effort to enhance data security and privacy for iOS users. The company has explained the reason behind the new changes that it has brought to the iOS 14 update. Apple wrote on the developer page that reads, ‘Apps on the App Store are held to a high standard for privacy, security, and content because nothing is more important than maintaining users’ trust.’
How Apple’s Move Impacts Facebook’s Business?
Apple’s iOS platform owns only 25 percent of the worldwide mobile market compared to the maximum percent of Android’s marketing. Moreover, Android is the utmost monetizable platform compared to iPhone users. Most of the iPhone users are of a better economic layer. As a result, if there is any change in ads policy or monetization on iOS, it has an excessive impact on ad and developer businesses globally. For example, an app install campaign on the Android platform might push more potential users compared to the iOS platform. However, the campaign on the final one will provide more precise potential paying users.
From the user’s point of view, experts believe that Apple’s move will help users to gain more control and choice on their information. Displaying more relevant ads is not at all the user’s need but it is more the requirement of an advertiser. In the blogpost, Facebook wrote, ‘We understand that iOS 14 will hurt many of our developers and publishers at an already difficult time for businesses.’ Previously, Facebook pointed out Apple as it charged fees for in-app purchases and for hurting app developers. To get more tech news and latest updates, just stay tuned to this website.