Facebook raises concerns that iOS 14 could harm its ad business
iOS 14 introduces a range of features to let users control which data each app can access, including clipboard notifications and also an option to disable tracking between apps. These features are already causing problems for some developers, and Facebook in particular is concerned about its ad business ahead of these changes.
Facebook Chief Financial Officer David Wehner told CNBC today that the company fears that iOS 14 will have a negative impact on how Facebook operates its advertisements. As the company’s revenue comes in large part from advertisements, any attempt to hinder such practice will hurt Facebook’s business.
Wehner refers to a new option included with iOS 14 that allows users to disable tracking between apps. Developers use trackers to identify each user in different apps and websites so they can target advertisements based on what you access on your device. Even if users leave this option enabled, third-party apps will have to ask permission for tracking and collecting your personal data.
Here’s how Apple describes this feature:
David Wehner argues that Facebook’s advertising platform is critical for small businesses as anyone can easily promote their products and services to millions of people. The company forecasts revenue growth of 10% for the third quarter, but now Facebook expects a decline in the fourth quarter once iOS 14 becomes available to the public this fall.