Facebook is not happy about the product and policy changes Apple announced in June, at its annual Worldwide Developers Conference (WWDC) and claims that it will impact iOS communications. The policy and the limits it places on advertising will be devastating to business development and the free Internet.
Facebook believes that businesses that support advertising have been a determinant factor in the growth and vitality of the internet and that personalized ads and user privacy can coexist. “We support proactive privacy measures and data transparency, but we don’t agree with Apple’s policy changes,” Facebook writes.
Impact to personalized advertisements
Apple’s proposed changes will limit your ability to effectively communicate, understand and interact with people on mobile devices and across the web. They will impact your ability to understand performance, control who sees your ads, and make informed decisions about your advertising budgets. As these changes take effect, over time you may see an overall decrease in ad performance and personalization and an increase in cost per action.
In particular, these changes will make you unable to:
- effectively deliver ads to people based on their engagement with your business;
- measure and report on conversions from specific customers;
- ensure your ads are delivered to the most relevant audiences at the right frequency;
- accurately attribute app installs to people using iOS 14 and newer;
- predict and optimize cost per action over time and efficiently allocate budgets.
Small businesses will have difficulty in reaching their target audience because of Apple’s policy. And this situation will have a negative impact on the growth of small businesses and they may not be able to compete with big companies. According to Facebook’s studies, when running ads on the Facebook family of apps to drive sales on their websites, small businesses saw a cut of over 60% of their sales, on average, for every dollar they spent when they weren’t able to use their own data to find customers on Facebook1. For example, currently, a local book store could spend $50 on a relevant and personalized ad and may win 5 sales. If they didn’t use their own data to personalize an ad, that business would spend $50 and may win only 2 sales. Facebook doesn’t expect the proposed iOS 14 changes to result in a full loss of personalization but rather are a move in that direction.
Without the predictable costs and personalized ads you are used to creating and launching, many new products and services would never work. Facebook believes in the opportunity for the creation and growth of new businesses that support advertising but disagrees with Apple’s attempt to disrupt the online advertising ecosystem and the small business opportunities it makes possible and supports.
As a response to this case, Facebook writes that it doesn’t agree with Apple’s approach and solution, yet it has no choice but to show Apple’s prompts. If it doesn’t, they will block Facebook from the App Store as a result of which the businesses and users that rely on its services would only get further harm. And Facebook company cannot take this risk on behalf of the millions of businesses who use its platform to grow.