Most recently, Apple announced its upcoming iOS 14 and how it will drastically alter how we receive and process advertisements on platforms such as Facebook. These significant changes come in the form of data tracking permissions, including a severe iOS 14 impact on Facebook that significantly affects small businesses, marketing agencies, publishers, and app developers alike.
But how major of an impact are we talking about here? Unfortunately, there is no telling how drastically ad ROI will drop off following Apple’s release. It is safe to assume that our Facebook ads performance will fall across the board, at least for the time being.
What is the iOS 14 Impact on Facebook?
Now, transparency for consumers sounds excellent enough, but the changes to permissions will impact Facebook advertising. All apps will now be required to receive approval directly from users to track or access advertising identifiers within their devices.
Data Tracking That Requires Approval
As per Apple’s announcement, what encompasses data tracking and what will require explicit permission from users is relatively narrow.
- Targeted advertisements inside of an app-based on any and all user data collected via the app or a website owned by the developer/company.
- Sharing device location data or email lists with a third-party data broker.
- Sharing emails, advertising IDs, and all other IDs with a third-party advertising network who would then retarget the same users in another app.
- Including a third-party SDK inside of an app to combine user data between multiple apps for targeted advertising or efficiency measurements
Conversely, Apple does not consider the following to be tracking, and as such, they do not require user permission:
- Any collected data linking to a third-party on an individual’s device that the party has not transferred, sold or shared in any way.
- When a data broker uses their shared, collected data for fraud detection, fraud prevention, or security reasons on your behalf.
Facebook’s Response to iOS 14
Of course, businesses and developers worry about their Facebook ads performance, and the significant impact iOS 14 will have on their brands. Facebook does point fingers. Their official statement says that Apple’s changes will inhibit one’s ability to connect with, understand, and interact with certain audiences on the web.
Facebook goes on to explain how such changes fill inhibit abilities, including:
- Effectively deliver advertisements to anyone user based on engagement.
- Measure and send conversions from specific customer bases.
- Ensure ads are shown to proper audiences at correct frequencies.
- Accurately attribute ap installations to anyone with iOS 14.
- Predict and use price per action within a timespan and allocate marketing budgets.
Despite their disagreement, Facebook has little to no choice. If they do not display Apple’s privacy and data prompts, they will likely ban their app from the App Store. That is no good for anyone. A Facebook ban on iOS means additional harm to companies and users.
How You Can Prepare for iOS 14
Before the launch of iOS 14, you will likely want to prepare your business or app for the upcoming changes.
Apple details a few key steps on how you may prepare.
- You may explain to users why you wish to receive their permission to track them before showing the prompt, so long as you are transparent in doing so.
- Prepare for all data collection and tracking information from users, as developers are solely responsible for any code included in the app. An SDK is allowed, so long as it adheres to Apple’s App Store Review Guidelines.
Furthermore, we recommend developers write up a notice, whether it be an email or an in-app message, that explains the new prompt and why data tracking and collection has changed for the release of iOS 14. Chances are, despite the tech-savvy age we live in, most users will not hear of the news regarding the iOS 14 impact on Facebook.
Opposing These Changes
If you, as a business or app developer, are unhappy with Apple’s changes, you are not alone. Facebook created a landing page specifically for small business owners to voice their opinion in opposition to iOS 14.
Furthermore, the social media giant designed a toolkit to help share posts, videos, and stores using the hashtag #SpeakUpForSmall businesses. Facebook believes Apple’s alterations will significantly impact small businesses more than any other organization in the country.
Who is Impacted Most by iOS 14?
While Facebook believes small businesses are most affected by Apple’s changes, they are not the only demographic hurting because of iOS 14. Entrepreneurs and content creators will witness significant drawbacks, too.
Both content creators and entrepreneurs rely on ad revenue to help keep them afloat. If these individuals cannot efficiently or effectively advertise their platform, they will look for other monetization methods, such as subscriptions. In turn, this hurts the user who may rely on a free app for news or entertainment.
Facebook expects a 50% drop in revenue for many small businesses, content creators, publishers, and entrepreneurs. Whether that happens remains to be seen, of course, as only time will tell.
What do you think of Apple’s iOS 14 update and how it affects almost everyone who relies on ad revenue to survive? If Facebook is right, it could have massive repercussions for many businesses nationwide at a time when hope is faltering.
If you are worried that iOS 14 may impact your business and you need some help, SeaSand Digital here is to help.
At SeaSand Digital, we offer social media services that are proven to increase your brand awareness and sales on social media platforms. Regardless of your needs, we are here for you.
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