The Facebook Spat with Apple: Advertiser Q&A
If you operate a business on Facebook, you’ve probably received pop-up notices from Facebook warning you about ominous changes coming because of Apple’s latest operating system update. What’s exactly happening, and why? Our new advertiser Q&A takes a closer look.
Why Is Facebook Upset with Apple?
The conflict comes down to access to customer data.
Apple’s new operating system update, iOS14.3, contains new privacy tools that prevent apps from being able to track user activity across the internet. All applications need to ask iPhone users for permission to track their activity for the purposes of advertising. There an estimated one billion people around the world who own an iPhone.
Put another way: under iOS14.3, if a person has a business’s app on their iPhone, that person needs to agree to allow the business to collect information about them. iPhone users now have more control whether they actually want personalized ads generated as the result of an app following them around the internet.
Facebook believes that this opt-in approach could create a major problem for Facebook’s app. Most Americans have expressed discomfort with the way Facebook tracks their personal data. Since almost all of Facebook’s revenue comes from advertising, Facebook sees the new opt-in policy as a threat.
How Has Facebook Responded to iOS14.3?
Facebook has attacked the update publicly. For example, in December, Facebook argued on its own site that tougher privacy controls will hurt small businesses that rely on Facebook advertising to reach people. Dan Levy, Facebook’s vice president of Ads and Business Products, wrote that Apple is “hurting small businesses and publishers who are already struggling in a pandemic.” He elaborated:
These changes will directly affect [small businesses’] ability to use their advertising budgets efficiently and effectively. Our studies show, without personalized ads powered by their own data, small businesses could see a cut of over 60% of website sales from ads. We don’t anticipate the proposed iOS 14 changes to cause a full loss of personalization but rather a move in that direction over the longer term.
Facebook has also reached out to businesses, news media, and agencies (including us) to voice its position through content such as webinars.
What Is Apple’s Response to Facebook?
Apple continues to go about its business without a corporate response with one exception: the following tweet from CEO Tim Cook, which speaks for itself:
Otherwise, Apple has spoken with its actions by going forward with the iOS 14.3 update.
When Does the iOS14.3 Update Happen?
Although Apple made iOS 14.3 effective in December 2020, the company has not yet enforced the opt-in prompt. None of the changes discussed here is happening as of this writing. Apple has not announced when it will make these changes and enforce the prompt.
What Should Advertisers Do?
First off, we recommend monitoring the development closely. But don’t panic. No one knows how many iOS 14.3 users will opt out with their apps – Facebook or otherwise. To be sure, people opting out will compromise everything from conversion data to attribution to custom audience sizes. Facebook says it plans to roll out new features in events manager to help mitigate the impact of those changes. We are monitoring this situation for our clients. Stay tuned.