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Facebook Says Apple's iOS 14 Anti-Tracking Features Will Cut 50% of its Audience Network Ad Revenue
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Good! I didn't spend $850 on a phone so you can track me. My phone, my business. You want to track me give out free phones.
"hurt" = not able to make as much money as easily off of dubious practices
So you are saying that if you access FB from Safari it will inhibit its tracking?
Too bad the impact isn't greater. This is a clear admission that Facebook has been selling its users' privacy.
And the next person/business will step in to take your place. Induced demand. It is the same reason adding lanes to highways doesn't work for long term traffic management. Advertisers who stayed away from Facebook previously will now come to the platform to pick up the slack you left. If anything, Facebook could actually see an increase from this.
You're not the first person to say this. Reality is less people would use it which is problematic for a social media platform. Social media also makes a lot of money... probably a great deal more from advertising and selling data then they would by charging a subscription fee for the fewer people who would pay for it.
Not sure i follow the logic , Facebook will offer a worst product to their clients and somehow it will benefit them ?
They will need to reduce their prices to retain their clients if they have less reach then before , there is NO way doing a worst job advertising is somehow better for them , if that was the case they would be doing it artificially right now.
The other annoying thing though is if I actually bought something that no one would reasonably want to buy again for a while, don't show 37 other freaking ads. Make it smarter to see that you looked at something but didn't buy or you bought something and show accessories for it
Problem is the targeted ads are stupid. I don't need to see 50 other ads for something I already bought! Show me ads for things I looked at but didn't buy or for items I might use with things I already bought.
Might as well just send copies of all your sensitive documents to them in advance.
You're so focused on one single advertiser seeing a drop. You're right. One advertiser with a healthy budget is likely to pull back on their ad spend because that return will fall. However, that is going to drive the cost per click down for everyone allowing other advertisers to enter the ballgame or increase their budgets trying to gain more marketshare. Over time as the market adjusts, cost per click will go back up to at least where we're at now if not higher as competition increases.
Simply can not stress this enough, but this change will NOT reduce the amount of ads people are going to see on iOS devices. It just isn't. If anything, people are going to see "more" out of perception because that targeted ad for the cool pair of shoes you looked at last week isn't going to follow you around now. Instead you're going to see a flower service, real estate, underwear, food, etc, etc.
Analysis: ID that binds the industry: Impact of iOS 14 privacy efforts on brands - Marketing Interactive 8/28/20
On the topic of Facebook warning publishers that they may see more than a 50% drop in Audience Network revenue from the disappearance of the IDFA, Lotame's VP, product management, Pierre Diennet, said this shows that publishers betting on first-party only, or the identity-less future such as the one proposed by some companies, are "walking into the best laid trap in a decade".
"They think they are reclaiming the value of their first-party data but, according to Harvard Professor John Deighton of Harvard Business School, tens of billions of dollars are at stake if third-party tracking ends without mitigation," he said. Diennet added that the US open web's independent publishers and companies reliant on open web tech would lose between US$32 billion and US$39 billion in annual revenue by 2025.
"Where will it go? About US$24 billion to US$29 billion in annual publisher revenues would likely be absorbed by walled gardens such as Google and Facebook," Diennet said. He added that Lotame is building solutions that will strengthen its publishers' future "through true innovation not regression to an over-hyped ad network".
Impact on the industry
The move by Apple in June to respect user privacy is not a new one, for the company has been doing so over the last few years, beginning with the option to allow users to limit ad tracking. Kabeer Chaudhary, managing partner, APAC, M&C Saatchi Performance told Marketing that the IDFA is a welcome move from the point of view from users as this will allow users to take the decision whether they would like to see targeted ads from a certain publisher or not. He added that it is expected that most users would choose to opt-out, which would be harmful for the app marketing ecosystem in its current form.
From a macro point of view, Chaudhary said the two areas that would be adversely affected would be adverting measurement and targeting. He explained that IDFA is used for deterministic attribution for app installs and events. As a result, the deprecation would lead to advertisers depending on more probabilistic forms of attribution such as digital fingerprinting.
"To counter this problem, Apple has also opened an API for measurement called the SKAdnetwork. However in its current form, it is a few years away from the reaching the value that has been provided by app attribution platforms," he added.
On the topic of Facebook warning publishers that they may see more than a 50% drop in Audience Network revenue from the disappearance of the IDFA, Lotame's VP, product management, Pierre Diennet, said this shows that publishers betting on first-party only, or the identity-less future such as the one proposed by some companies, are "walking into the best laid trap in a decade".
"They think they are reclaiming the value of their first-party data but, according to Harvard Professor John Deighton of Harvard Business School, tens of billions of dollars are at stake if third-party tracking ends without mitigation," he said. Diennet added that the US open web's independent publishers and companies reliant on open web tech would lose between US$32 billion and US$39 billion in annual revenue by 2025.
"Where will it go? About US$24 billion to US$29 billion in annual publisher revenues would likely be absorbed by walled gardens such as Google and Facebook," Diennet said. He added that Lotame is building solutions that will strengthen its publishers' future "through true innovation not regression to an over-hyped ad network".
Impact on the industry
The move by Apple in June to respect user privacy is not a new one, for the company has been doing so over the last few years, beginning with the option to allow users to limit ad tracking. Kabeer Chaudhary, managing partner, APAC, M&C Saatchi Performance told Marketing that the IDFA is a welcome move from the point of view from users as this will allow users to take the decision whether they would like to see targeted ads from a certain publisher or not. He added that it is expected that most users would choose to opt-out, which would be harmful for the app marketing ecosystem in its current form.
From a macro point of view, Chaudhary said the two areas that would be adversely affected would be adverting measurement and targeting. He explained that IDFA is used for deterministic attribution for app installs and events. As a result, the deprecation would lead to advertisers depending on more probabilistic forms of attribution such as digital fingerprinting.
"To counter this problem, Apple has also opened an API for measurement called the SKAdnetwork. However in its current form, it is a few years away from the reaching the value that has been provided by app attribution platforms," he added.
You are missing my point (or else sorry as i misunderstood you), advertisers will go to a different platform all together or pay less for Facebook for the worst product ,also in regards to random ads - I am more then fine with that , this means that overall ppl will waste less money on stuff they dont really need , if you need it you will search for it and find it , i dont want to be targeted by ads , as its a human weakness that is being exploited and targeted , the entire gambling/loot box/advertising that is being at the palm of ppl (and kids/teenagers) hands in unprecedented and it is a real issue , we used to see ads once in a while during a TV show , sometime when we drive on a billboard , they were the same for everyone , now they are targeting you specifically and as we use our mobile phones throughout the day , its much more effective for them , which means its worse for us - but i guess thats a bit off topic.
TLDR - bring on the random ads that ppl can ignore !! instead of being an effective ad target.
Yes. Texting. Facetiming. Phone calls. Sharing photo albums with iCloud links. People act like Facebook is the only way to communicate. The only difference is the people you never really care about fade away and you are only contacting the people who truly mean something to you. There are so many ways to keep in touch.
Now if apple can unpartner with google so I can STOP getting spam texts again that would be great
I have never purchased Apple products before. FB even tracks people who aren't on FB. This is a great step to cut out the glorified information pimps like FB trading our personal data for their profit. I think I will buy an Apple iPhone after this step. God bless Apple.
It's not all about targeting, it's as much about attribution.
If you were the developer of an ad supported app (or website) and people paid you because their ads appeared and people tapped/clicked them your income is reliant on being able to measure that people do indeed take action on the ads. Otherwise advertisers wouldn't pay you. If you can't measure it your income is gone. This is why Facebook is suggestion it's 'audience network' product is dead (basically ad placements in apps/websites)
The IDFA - in particular for advertising in apps, allowed advertisers and app owners to be able to measure what happened and agree payment. Or if your trying to grow an app, and run ads to encourage people to install it - you'll have one arm tied behind your back trying to work out which ad networks are actually resulting in people installing your app.
The net result of this could actually perversely create the opposite outcome Apple are trying to achieve. Guidance from Facebook has been for app developers to install the Facebook SDK into their apps to help it measure ad conversion (even if you have no other use for the Facebook SDK. Google have done the same - install their 'firebase' analytics platform in your Google and iOS ads to help measure conversions and ad performance.
This means facebook and google will get data from every tap you make in these apps, rather than just knowing you installed it.