New Apple iPhone’s privacy feature will no longer let Facebook track you without your consent. Will turn off automatic “opt-in” to prevent Facebook from tracking your data for targeted advertising
Nickie Louise
Posted On January 5, 2021
Late last year, we wrote about Apple after CEO Tim Cook fired back at Facebook saying users deserve control and transparency. The maker of the iPhone also unveiled a new app tracking transparency in its upcoming iOS 14 software.
It all started after Facebook launched a full-page newspaper ad attacking Apple over ad-tracking. Claiming to be standing up to the iPhone maker on behalf of small businesses, Facebook claimed in the ad that Apple’s upcoming mobile software changes around data gathering and targeted advertising are bad for small businesses. However, this is rich considering that Facebook is known for tracking millions of its users.
Now, Apple is ready to deal a final blow to Facebook’s pockebook, which may affect 3% of Facebook revenue. As Apple prepares to roll out the new Apple iPhone’s privacy feature, according to a report from CNBC, MKM Partners analysts said Tuesday some online ad companies like Facebook and Snap will be more exposed to the impacts on mobile advertising than their peers.
The report said that the upcoming Apple’s change will take a privacy option for users to share their advertising ID, or “IDFA,” that was previously buried deep in users’ phones and put it front and center when they open an app. “Before using an app like Facebook that tracks your data for targeted advertising, you’ll be asked to enable the tracking. Companies like Facebook fear Apple’s notice will discourage people from enabling tracking, therefore limiting their ability to target ads, the core of their businesses,” CNNC wrote.
The new change is expected to dramatically impact the ability of advertisers to target ads the way they have been since people likely won’t opt-in.
The analysts said based on these parameters, Facebook and Snap have the highest potential headwind due to IDFA changes, followed by Twitter and Pinterest. They said Google and Amazon have the lowest relative exposure.
“However, when it comes to gravitational pull, relative ad efficacy, and access to 1st party data vs. other sub-scale platforms, programmatic ad networks and publishers, we expect the Big Six online ad companies to fare better than the rest of the industry,” they wrote. “We expect more attention on this issue as we approach 4Q earnings/2021 outlook, and we’d be buyers on weakness, particularly of FB and SNAP shares, attributable to upcoming iOS 14 changes.”
The new Apple iPhone’s privacy feature is part of the Apple app tracking transparency policy that is expected to launch in 2021. Apple said it “does not require Facebook to change its approach to tracking users.” Below is the statement in full:
“We believe that this is a simple matter of standing up for our users. Users should know when their data is being collected and shared across other apps and websites — and they should have the choice to allow that or not. App Tracking Transparency in iOS 14 does not require Facebook to change its approach to tracking users and creating targeted advertising, it simply requires they give users a choice.”
