The update includes several privacy features that make it harder for companies to track consumers online with personalized ads without their consent.
Explicitly ask for permission
App developers use the so-called "Audience Network" on Facebook, which allows them to show targeted personalized ads based on user data from the platform. Apple devices make this information available to Facebook and its advertising partners via an "Identifier for Advertisers" (IDFA). With iOS 14, however, each individual app user must explicitly ask permission for this data sharing. If users don't consent, app developers can't do ad tracking.
According to Facebook, these new privacy features will cause many users to ban tracking, which is especially a disadvantage for small businesses that rely on ad revenue. "The update will hurt many of our developers at what is already a very difficult time," the company warns.
Advertising revenue halved
For now, Facebook no longer wants to take advantage of Apple's IDFA information. The company estimates that app advertising revenue could drop by more than half. That's why using the Audience Network on Apple devices might not pay off in the future. (pte)