Last week, Apple Released IOS 14.5, And with it a new feature that sends scrambling to online advertisers: for the first time, users can tell apps not to track their activity across different sites and services. In an effort to prevent this, Facebook and Instagram iOS apps are advising users that tracking helps keep these platforms “free.”
This is technically true; Facebook is an advertising agency that makes its users more likely to click, but the iOS 14.5 notice framed the issue in such a way that it means that if Facebook faxes before this type of tracking, or worse, Apple’s app tracking transparency update will be leaked to social networks. May force to start charging fees for its users. So it should be absolutely clear: none of this is the case.
It’s not that Apple’s anti-tracking system won’t take a bite out of Facebook’s profits. The proof is in the pushback; The platform has launched a series of campaigns against the system, including a series of full-page ads in major newspapers in December. (Facebook is not alone here; advertising agencies and their affiliates have largely canceled the update, and formed a marketing alliance in Germany. Has filed an unreliable complaint Against Apple.)
“There’s some sort of ad, mostly retargeting, it’ll be harder to show, since now Facebook doesn’t know who went to which app, put an item in the shopping cart, et citira,” said Ron Berman, professor of marketing. Verton School in Pennsylvania. He notes that Facebook will have a harder time showing that product sales were tied to specific ads, now that sales are limited by what information can flow across sites and applications.
But you don’t have to look any further than Facebook’s most recent quarterly earnings report released last week, it doesn’t look like iOS 14.5 will push the company any further east. Company Acceptance In the first three months of 2021, it had more than $ 28 billion in revenue and doubled its net income to দশ 9.5 billion from the same period a year ago. It has 64 billion in cash and equivalent in hand. That’s right. Even if the option of tracking each single iOS 14.5 user is chosen, Facebook will still have an Android device that can reduce profits.
Preventing tracking does not mean that the ads go away completely. This reasonably makes them less relevant. People often can’t click on them, which makes them less valuable, and outside analysts predict that Apple’s new policy will appear on the bottom line of Facebook. “We’ve seen a weakness of about 2 percent to 7 percent from Facebook’s advertising revenue this year, and this range seems to us to be commendable,” said Nicole Perrin, chief analyst at Emarketer. He added that the company is expected to increase its advertising revenue despite the app tracking transparency. Note Previously, when third-party data disappeared, companies that kept more first-party data had an edge. That’s it Google, And it’s Facebook.