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Facebook claims that Apple’s upcoming iOS 14 update will result in a more than 50% drop in its advertising business that allows mobile software developers to provide in-app advertisements targeted to users based on Facebook’s data.
“We expect these changes will disproportionately affect Audience Network given its heavy dependence on app advertising,” Facebook posted on a blog. “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 monetize on Audience Network to decrease.
Advertisers use a unique device ID number to target ads and estimate their effectiveness. In iOS 14, each app that wants to use these identifiers will ask users to opt in to tracking when the app is first launched. Facebook said its apps will not collect IDFA information on iOS 14.
Facebook says 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’s full statement is below:
In June, Apple announced iOS 14 updates that, among other changes, require apps to ask users for permission to collect and share data using Apple’s device identifier.
Given the impact the policy will have on businesses’ ability to market themselves and monetize through ads, we’re sharing how we’re addressing iOS 14 changes and providing recommendations to help our partners prepare, while developers await more details on this policy.
First, we will not collect the identifier for advertisers (IDFA) on our own apps on iOS 14 devices. We believe this approach provides as much certainty and stability that we can provide our partners at this time. We may revisit this decision as Apple offers more guidance.
Additionally, we will remind users that they have a choice about how their information is used on Facebook and about our Off-Facebook Activity feature, which allows them to see a summary of the off-Facebook app and website activity businesses send to Facebook and disconnect it from their accounts.
There are a few things our partners should know to prepare for iOS 14. First, we will release an updated version of the Facebook SDK to support 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. In light of these limitations, and in an effort to mitigate the impact on the efficacy of app install campaign measurement, we will also ask businesses to create a new ad account dedicated to running app install ad campaigns for iOS 14 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 monetize 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. We expect less impact to our own advertising business, and we’re committed to supporting advertisers and publishers through these updates. Learn more about the impact to Audience Network here.
We believe that industry consultation is critical for changes to platform policies, as these updates have a far-reaching impact on the developer ecosystem. We’re encouraged by conversations and efforts already taking place in the industry - including within the World Wide Web Consortium (W3C) and the recently announced Partnership for Responsible Addressable Media (PRAM). We look forward to continuing to engage with these industry groups to get this right for people and small businesses.
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