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Targeted Facebook ads are about to lose a large Audience: iPhone owners

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The face of Facebook marketing is about to change.  Together with Apple’s rollout of iOS14 in September, Facebook issued that a short announcement to advertisers letting them know that their previously hyper-targeted advertisements, as facilitated by the Facebook Audience Network platform, may not work anymore.

But while this may be bad for the advertisers and Facebook, this is a win for users’ privacy following update of this iPhone software will feature a new role wherein users have to opt to be tracked by advertisers.

This will require programs to inquire about iPhone users’ permission to collect and share their data.  This places advertisers who rely heavily on Facebook’s stage in a pickle, as Facebook’s ads are famous for being extremely specific to the user.

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July 31 watched the conclusion of a massive advertising boycott — with over 1,000 brands participating — that were supposed to attract Facebook to its fiscal knees from the name of social justice.

Instead, the boycott barely dented the platform’s earnings. But maybe it is not the actions of many businesses, but one big competitor which may spur change.

Apple, according to the U.K.-based advocacy group ProPrivacy, has ensured”that firms like Facebook can’t readily perform cross-app marketing by exploiting user preferences information which was chosen on its primary platforms,” 

Facebook said, “we won’t collect the identifier for advertisers (IDFA) on our apps on iOS 14 apparatus”  The IDFA is a key tool for advertisers, who use the number to track iPhone users’ internet movements. 

For advertisers, Facebook’s inability to present accurate insights on where their ads must be served across different platforms will undoubtedly make the platform a less attractive prospect.

Facebook isn’t transparent about how much of its revenue depends on the audience system platform, but at least in 2016, about 80% of the revenue came from advertisements.

This will affect their bottom line, but they likely won’t tell us bcy how muh,” said Heather Federman, the vice president of privacy and policy at BigID, solitude, and data-management business.  “There will be an effect because, for their business model, an enormous portion of it is driven by advertising revenue.”

The same isn’t true of Apple.  Its business design means it could be more privacy-focused.  Each programmer will now have to ask users, basically, “are you OK with us monitoring you,” said Federman.  “If I’m a regular iPhone user, who isn’t familiar with a lot of the stuff, that will probably freak me out.

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Advertisers will nonetheless look to Facebook, Federman said, but they’ll also need to look in other ad revenue sources. This means for users The irony is that its likely users won’t see much difference, said Federman and Doble.”We are so utilized to seeing advertisements, that we likely won’t understand if they have changed or not,” Doble said. 

The companies will grab up or figure out additional ways around this. Of course, just one segment of Facebook’s market utilizes iPhones.    ProPrivacy noted that the Facebook Audience Network will probably still operate whole steam ahead on Android.

This could mean one big change for consumers: The decrease of free apps and the rise of apps you must cover.  “This may force a whole lot of programmers, who have relied on free programs, to need to go to a subscription fee model since they can not rely on ad revenue anymore,” said Federman.

In such a circumstance, Apple gets a 30% cut of all those sales.  “Either way, Apple looks great from a solitude angle, and they’ll add more to their bottom line.”

A big win, in the meantime, is for privacy advocates.  “This will give consumers the much-needed ability to prevent themselves from being constantly followed around from 1 platform to another,” explained Walsh.

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