Facebook has said that Apple’s new anti-tracking update for iOS 14 could have a negative impact on ad revenue, especially for developers and publishers using its Audience Network.
Apple in June announced that as part of the iOS 14 update, apps will require to ask users for permission to collect and share data using Apple’s device identifier.
This will negatively impact Facebook’s Audience Network used by advertisers and publishers, thus impacting their ability to monetise through ads, the company said.
Currently, advertisers use a unique ID number for more targeted ads and to estimate the ads’ effectiveness. Apple’s new update would require users to opt into tracking when the app is first launched.
Facebook will not collect this identifier for advertisers (IDFA) on its own apps on iOS 14, it said. It will also release an updated version of the Facebook SDK compatible with iOS 14.
“The new version of the Facebook SDK will provide support for Apple’s SKAdNetwork API, which limits the data available to businesses for running and measuring campaigns,” Facebook said.
Audience Network
It further warned that though it is not likely to impact Facebook’s own ad business, it will impact developers and publishers’ ad revenue due to the impact on its Audience Network feature. Audience Network lets advertisers create more personalised ads for users.
“We expect these changes will disproportionately affect Audience Network given its heavy dependence on app advertising. Like all ad networks on iOS 14, advertiser ability to accurately target and measure their campaigns on Audience Network will be impacted, and as a result publishers should expect their ability to effectively monetise on Audience Network to decrease. Ultimately, despite our best efforts, Apple’s updates may render Audience Network so ineffective on iOS 14 that it may not make sense to offer it on iOS 14,” Facebook said.
“While it’s difficult to quantify the impact to publishers and developers at this point with so many unknowns, in testing we’ve seen more than a 50 per cent drop in Audience Network publisher revenue when personalisation was removed from mobile app ad install campaigns,” it said.
“We understand that iOS 14 will hurt many of our developers and publishers at an already difficult time for businesses,” it added.
Facebook is implementing various changes to comply with the new updates prior to the launch of iOS 14. It also emphasised on the need for “industry consultation” for changes to platform policies, “as these updates have a far-reaching impact on the developer ecosystem”