Apple’s bold new iOS 14 move could really hurt Facebook

Apple’s iOS 14 privacy features are great for users, but they could really hurt Facebook and its major advertising clients, the gaming companies.

Apple’s iOS 14 privacy features are great for users, but they could really harm Facebook and its key … [+] advertising clients, gaming companies.

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Apple’s upcoming iOS 14 launch includes important new features that help users improve their privacy and security. But Apple’s decision to double the apps that track you through services in iOS 14 has some people very concerned, especially Facebook.

This according to a new article in The information, which details how Facebook met with its major advertising clients, the gaming companies, to try to alleviate their concerns. In addition to reassuring this important group of customers, The Information explains how Facebook employees “have been busy trying to get more information on Apple’s next shift,” citing a gaming executive who met with the company.

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It started in iOS 13, but iOS 14 ups the ante further

It was already clear that Facebook was really worried about iOS 14. Apple’s previous big iOS 13 operating system update had hit Facebook and Google hard. But one aspect in particular in iOS 14 is bothering Facebook and its advertising customers: the new iOS 14 feature that allows users to disable tracking across apps.

Since iOS 14, Apple requires people to actively turn on ad tracking. Before being tracked you will receive a notification that says “x would like permission to track you through apps and websites owned by other companies. Your data will be used to deliver personalized ads to you.”

Apple will allow you to choose between “Allow tracking” or “Ask app not to track”.

The impact for users is exceptional: greater transparency and greater privacy. But for Facebook and others, it could be disastrous. Facebook chief financial officer David Wehner said CNBC that upcoming changes to Apple’s iOS 14 operating system could harm the social network’s ability to target ads to users.

In the case of Facebook’s gaming customers, it appears this will impact spending on app install ads in iOS 14, which ask people directly to download an app or game and require more detailed targeting data.

But it is also possible that Apple could lose. The Information also cites data from Sensor Tower, stating that 68% of all App Store revenue last year came from games.

Of course, Apple knows what it’s doing, having already doubled down on tracking in iOS 13, and will continue to differentiate itself as the brand that cares about your privacy. “What happens on your iPhone stays on your iPhone”, the phrase coined by Apple’s marketing last year, is still very relevant to its strategy today.

Apple will harm advertisers but increase user privacy

Apple can afford to harm advertisers, because its model is not ad-funded like Facebook and Google are. “Businesses can make a huge amount of money from targeted advertising with the data they acquire, but with a growing number of people interested, Apple is clearly starting to see the value in protecting their users,” says Jake Moore, specialist of the IT security at ESET.

He warns that this could also become more prevalent: “Usually, once Apple decides to show a particular new feature, other companies tend to follow suit and echo their movements, so we may see other companies magnanimously reduce their tracking. data or at least offer an activation function. “

Apple’s privacy strategy is becoming more and more aggressive, so Facebook and others are right to worry. But iOS 14 is great for users, who will have the transparency to actively decide which services they trust and which they want to avoid.

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Through: www.forbes.com

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