Facebook (FB) expects Apple's iOS 14.5 update to impact advertising starting in Q2 2021

The recently released App Tracking feature on iOS devices are expected to impact Facebook's advertising business.

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It’s no secret that Facebook (FB) is among the many programs that track user data in order to serve them targeted advertisements. However, a recently released feature for iPhones and iPads will directly prevent them from doing just that. The App Tracking Transparency setting in iOS 14.5 allows users to opt out of being tracked across applications, including by Facebook. In reporting its Q1 2021 results, Facebook stated that it expects this to have an impact on the company’s advertising beginning in Q2 2021.

Facebook shared its Q1 2021 results, where it went over its business performance over the last few months, as well as how it expects to perform in the coming quarter. It was here that the company spoke to the recently released iOS 14.5 update and how it will impact business.

“We continue to expect increased ad targeting headwinds in 2021 from regulatory and platform changes, notably the recently-launched iOS 14.5 update, which we expect to begin having an impact in the second quarter. This is factored into our outlook,” the company shared in its latest financial report.

Apple's new iOS 14.5 software update gives iPhone and iPad users much more agency in preventing applications from tracking their data and behavior, which will certainly have an effect on a company like Facebook’s ability to tune ads to a user’s interests. Apple CEO Tim Cook spoke about how the move could potentially impact Facebook in an interview earlier this month.

There’s no way to tell how big of an impact there will be until Q2 results come out, but Facebook is anticipating that iOS 14.5’s App Tracking Transparency feature will indeed have an effect on the ad business. For more on Facebook as well as Apple’s business moves, stick with us right here on Shacknews.

Contributing Editor

Donovan is a young journalist from Maryland, who likes to game. His oldest gaming memory is playing Pajama Sam on his mom's desktop during weekends. Pokémon Emerald, Halo 2, and the original Star Wars Battlefront 2 were some of the most influential titles in awakening his love for video games. After interning for Shacknews throughout college, Donovan graduated from Bowie State University in 2020 with a major in broadcast journalism and joined the team full-time. He is a huge Star Wars nerd and film fanatic that will talk with you about movies and games all day. You can follow him on twitter @Donimals_

From The Chatty
      • reply
        April 28, 2021 6:46 PM

        I love the conspiracy theories that Apple is somehow doing this to boost their own ad revenue for the App Store. So dumb.

        • reply
          April 28, 2021 6:59 PM

          I mean, they are applying different rules/policies/deafults and UI toggles to their own ad network and ad placements (namely the App Store) than they are to 3rd parties. Meanwhile they are doubling the number of ad slots in App Store search results. It's not exactly a conspiracy. They're obviously trying to drive more App Store ad revenue, they've stated that publicly with investors and their actions support that. Amazon is now making billions of dollars a quarter in ad revenue. A huge portion of FB's advertising revenues historically have come from app install ads in the Newsfeed which is exactly what an App Store search ad slot accomplishes too. Apple obviously has an opportunity to capture a huge amount of revenue here and get to do it under the guise of a privacy focused company unlike FB/Google/Amazon.

          Apple's defined tracking as Fortnite sharing information with Google so you might see targeted ads for PUBG in search results as "tracking" but seeing ads for PUBG in the App Store because Apple knows you downloaded Fortnite is "not tracking".

          Very curious definition of privacy


          https://twitter.com/Carnage4Life/status/1387153977620451336

          Imagine Google doing something like this on Android where tracking is defined as 'anyone not Google tracking you'.

        • reply
          April 29, 2021 6:04 AM

          They’re not doing this just out of the goodness of their heart. There’s significant benefit to them and their ecosystem while also appearing to do this for solely privacy.

        • reply
          April 29, 2021 7:20 AM

          Well, let's be equally honest, Apple isn't doing this just out the goodness of their heart. It's all motivated by money. They just think they can make profit from this particular strategy. It may not be ad revenue, but there's increased profit to be had for sure.

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