Facebook warns of a 50% hit to advertisers' revenue from iOS 14

Facebook warns of a 50% hit to advertisers' revenue from iOS 14

Facebook said that because of this change, it will no longer collect the identifier for advertisers on its own apps for iOS 14 devices.

Apple announced modifications coming to iOS 14 at its annual developer conference in June, including a change to a unique code linked to each device, known as an Identification for Advertisers, or IDFA.

Apple today seeded the first beta of an upcoming iOS 13.7 update to developers to introduce new COVID-19 Exposure Notification options.

"This is not a change we want to make, but unfortunately Apple's updates to iOS 14 have forced this decision", Facebook wrote in a blog post. "As a result, some iOS14 users may not see any ads from Audience Network, while others may still see ads from us, but they'll be less relevant", the company wrote.

By pausing IDFA collection, Facebook will effectively halt serving personalized in-app ads to iPhone users once they upgrade to iOS 14, an update that is expected as soon as next month and likely to have far-reaching implications for the industry.

Apple has positioned itself as a champion of user privacy, while Facebook has criticised Apple's power over the App Store as bad for developers and small businesses. It also adds a dedicated ‌Exposure Notification‌ section to the Settings app, rather than burying the feature in the Privacy section of Settings.

Facebook contends that the feature will hurt many developers and publishers "at an already hard time", including small businesses that depend on ads. Earlier in August, a report indicated that Facebook was meeting with gaming firms - a key source of ad income - to hear their concerns about the anti-tracking feature.

The announcement, which Facebook made Wednesday in a note to app developers, will affect its Audience Network business, which connects users' Facebook identities with their off-platform activities.

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