Facebook announces its quarterly results and is reported that this is the first time social media platform users do not grow.
If it is not enough punch, the CFO company reveals that the features introduced by Apple are set to cost social media giants around $ 10 billion in 2022.
Features – not new but introduced transparency tracking applications (ATT).
Here we explain what ATT is and how it costs billions of Facebook dollars.
What is transparency tracking application? Apple first showed off features in 2020 in WWDC, annual developer conference.
There are many skeptics and Apple giving developers – including Facebook – time to understand and get used to the idea.
This feature was launched last year and what it did was to give more control to iPhone users on whether they wanted to be tracked by advertisers online throughout the application.
Apple said that it is a user and not a developer who must decide on what data they get or share.
Transparency tracking application lets you choose whether the application can track your activities in other applications and company websites for advertising or sharing with data brokers.
“If you look at the request to track your activities, you can tap possible or request an application not to track.
You can still use the full application capability, regardless of whether you allow the application to track your activities”, explained Apple.
What is a ‘problem’ Facebook with Apple and Attams applications using something called IDFA or identifier for advertisers.
What IDFA does is that it uses random identifiers to provide customized ads.
As you will look for “holidays in the hills” and suddenly you see advertisements related to hotels in hills or other weekend holidays on the internet.
This IDFA is advertising to the user and income to the application.
This is the data used Facebook and others and this is a rather common business model.
Facebook says that IDFA helps them understand and now how the ad campaign has been done.
It also helps many small developers in generating income because they remain their biggest source of income.
Apple argues that it gives users a choice – if they want the application to track it, they are welcome to do so.
“We believe users must have a choice of data being collected about them and how it is used.
Facebook can continue to track users in the applications and websites as before, transparency tracking applications on iOS 14 will only request that your permission first,” CEO said Apple Tim Cook about features on December 2020.
What about this? The targeted ad is a great source of income for Facebook and ATT stops very.
A report by the Financial Times last year revealed that 90% of its income from Facebook came from targeted advertisements.
The report also notes that 80% of iPhone users choose not to be tracked by many applications, including Facebook, Snap and others.
That means losing very large income and only because of an Apple big change brought to the iPhone.
A report by CNBC Sheryl Sandberg, COO, Meta quotes, where he said that iOS changes reduce the accuracy of Facebook ads, pushing prices based on sales or download results.
He also said that small businesses were hurt by Apple again – which was something debated on Facebook since ATT’s time was announced.