Facebook CEO Mark Zuckerberg at a hearing in the US House of Representatives in October 2019
Photo: MANDEL NGAN / AFPFacebook warned of the effects of new data protection features in iOS 14 on Wednesday evening. The income of publishing houses and app developers through advertising is likely to decline massively due to changes in Apple's iPhone operating system, according to Facebook in a blog post. The update to iOS 14 is expected in a few weeks.
The decline in income is due to the fact that personalized advertising is made significantly more difficult by iOS 14. Tests have found a decrease of more than 50 percent in the income app operators get when advertising is displayed in their apps.
Facebook carried out the test with its "Audience Network" advertising program. Advertisers can use this to book personalized ads, which are then displayed in other apps. Facebook forwards income from this to the app operator. According to Facebook, the decline in revenue could have consequences for smaller developers and publishing houses in particular.
David Chavern, president of the North American publishing association News Media Alliance, does not expect the consequences for publishing houses to be as severe as Facebook is. For example, based on their own data about what kind of stories a user reads, they would be able to choose which ads are shown to this user, Chavern told Reuters. This type of personalized advertising is not restricted by Apple's update .
iOS 14 offers more data protection
The reason for Facebook's concern: In iOS 14, users can decide for themselves whether they want to transmit their so-called IDFA identification number to app operators. This identification number is important so that advertisers can display targeted, personalized advertisements. (Read the background to the new data protection function in iOS14 here.)
Facebook stated in its blog post that in response to Apple's update, the company's apps - which include Instagram and WhatsApp in addition to the Facebook app - will be changed so that they no longer collect IDFA numbers.
"We didn't want these changes, but unfortunately Apple's update to iOS 14 forces us to take this step," said Facebook's blog post. However, the change in your own apps will mean that when you use the company's apps under iOS 14 you will not be asked whether you want to transfer data to Facebook.
App revenue instead of advertising revenue?
When exactly iOS 14 will be released is not known. Such a large update is often released in the middle to the end of September, but there could be delays due to the Corona crisis. Observers expect a release in October. A beta version has been available for months.
"Apple is also pursuing a self-interest with this step," suspects John Nardone, head of the online advertising company Flashtalking, to Reuters. "If it becomes more difficult to earn money with advertising, then apps have to charge users more directly," explained Nardone.
As you know from the conflict with Epic Games, Apple takes 30 percent of these sales. The company doesn't get a lot from advertising, but does benefit from app revenue, according to Nardone.
Icon: The mirrorhpp / Reuters
