Apple iOS 14 audience may cut network revenue in half

Facebook co-founder, president and CEO Mark Zuckerberg testifies before the House Energy and Commerce Committee on April 11, 2018 in Washington DC at the Rayburn House Office Building in Capitol Hill.

Yasin Ozturk | Anadolu Agency | Getty Images

Facebook on Wednesday acknowledged that Apple’s upcoming iOS 14 could bring down its audience network advertising business by more than 50%.

Facebook had previously warned that iOS 14 could affect its advertising business, but the company’s blog post on Wednesday specifically pointed out how effective this effect could be. The Facebook Audience Network allows mobile software developers to provide targeted in-app advertising to users based on Facebook’s data.

Today, advertisers can For better ads use a unique device ID number called IDFA and estimate their effectiveness. In iOS 14, each app that wants to use these identifiers will ask users to opt for tracking when the app is first launched. Facebook said that its app will not collect IDFA information on iOS 14.

Facebook says that more than 1 billion people see at least one audience network advertisement every month, although many of them are probably using Android phones and will not be affected by the change. Facebook derives almost all of its revenue from advertising, but it is not known what percentage of ads are attributed to Facebook and other assets versus audience networks.

Apple has not revealed when iOS 14 will launch, but it is expected to roll out this year.

The social network published a blog, which will take steps to ensure that its advertising business suits Apple’s needs. These steps will limit how Facebook and its advertisers can target ads to iPhone and iPad users.

“We know that this can severely affect publishers’ ability to monetize via the Audience Network on iOS 14, and despite our best efforts, may make the Audience Network on iOS 14 so ineffective that in the future It might make no sense to introduce it on iOS 14. ” “Facebook said in a blog post.

Facebook said, “While it is difficult to determine the impact of publishers and developers at this point with so many unknown people, we have seen the audience network publisher’s revenue fall by more than 50% when privatizing mobile ad install campaigns. Was removed from, ”Facebook said. “In fact, the impact on the audience network on iOS 14 can be enormous, so we’re working on short-term and long-term strategies to support publishers through these changes.”

Despite its announcement, Facebook shares rose 5% in mid-day trading on Wednesday.


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