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  • Apple’s privacy change could have a big impact on Facebook’s business

Apple’s privacy change could have a big impact on Facebook’s business

Sarah Jacobson 6 min read
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With Apple’s upcoming privacy change, Facebook could face a significant threat to its advertising business. In response, Facebook has launched an ad campaign stressing the importance of personalized advertising and its potential to benefit advertisers and users alike.

The privacy change being introduced by Apple will involve the App Tracking Transparency framework. This framework will require developers to ask users for permission before collecting data through apps like Facebook. This will result in a decrease in the amount of data that can be collected and used for targeted marketing campaigns.

As personalized advertising has become an integral part of Facebook’s monetization strategy, the company is understandably concerned about how this could affect their business model. To counter this, they have launched an ad campaign to emphasize how personalized ads can help businesses and consumers. The campaign emphasizes four core values: control, security, privacy and transparency — all echoed in Apple’s upcoming change — and how they can work together to benefit everyone involved in using personalized ads on their platform.

The implications of this advertising campaign remain to be seen as we await Apple’s move which is expected to take effect early 2021.

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Apple’s Privacy Change

Apple’s upcoming privacy changes could majorly impact Facebook’s business.

Apple has announced that it will require apps to ask for user consent before collecting data. This could significantly impact Facebook’s ability to track and target users with personalized advertising.

In response, Facebook has launched an ad campaign to defend personalized advertising ahead of the change.

Overview of the privacy change

Apple recently announced that they will roll out a new privacy feature in iOS 14.5 called AppTracking Transparency. App developers will need to get the user’s explicit permission before tracking their activity across other apps and websites. This change has sparked a backlash from many companies, including Facebook, which relies heavily on user data for personalized advertisements.

To combat the impact of Apple’s privacy change, Facebook has launched an advertising campaign to defend its business model of personalized advertising. The ad campaign focuses on the idea that businesses are run on digital ads. It argues that targeted advertisements are important for ensuring consumers don’t miss out on deals or discounts they could be interested in.

The major takeaway from this privacy change is that it puts more control in the hands of users when it comes to data privacy. Of course, it remains to be seen how much of an impact it will have on Facebook and other companies who rely heavily on user data for their services and advertising campaigns. Still, one thing is certain – this move by Apple is likely to usher in a new era of increased consumer control over personal data.

Impact of the privacy change on Facebook

Apple recently announced their upcoming iOS 14 privacy updates which, if approved, could significantly impact Facebook’s personalized advertising business. The proposed changes would require app developers to get consent from users before they can access the Identifier for Advertisers (IDFA) or track activity and data. This could potentially limit the ability of apps to perform targeted advertising, which is Facebook’s primary source of revenue.

The situation is so serious for Facebook that it has launched a major ad campaign in response, arguing that it believes personalization is an important part of online advertising and should be protected from Apple’s proposed privacy change. The company also contends that these changes would hurt small businesses by reducing their ability to target and reach customers with effective ads.

Ultimately, Apple has yet to put the proposal into action and it is unclear how this move will affect Facebook’s business. It remains to be seen how this dramatic change to consumer privacy will play out when it comes to personalization and targeting of ads on Facebook as well as other apps.

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Facebook launches ad campaign to defend personalized advertising ahead of Apple privacy change

In response to Apple’s upcoming privacy changes, Facebook has launched a campaign to defend personalized advertising to protect its business interests.

Facebook has opposed Apple’s changes, claiming that it will hurt small businesses that rely on targeted ads to reach customers.

Let’s explore more of these regulations’ implications on Facebook’s business.

Launch of ad campaign to defend personalized advertising

As Apple moves ahead with its App Tracking Transparency (ATT) initiative designed to give iPhone users more control over their data, Facebook has pushed back with an ad campaign defending its business model of personalized advertising.

The campaign, which started on March 1st and runs in countries across the EU, highlights the benefits of personalized ads rather than ones that are more general or ‘one-size-fits-all’. For example, it states that some brands only geotarget people within 25km of their store before adding that personalization makes for ‘more tailored ads which are more interesting and relevant’.

Facebook has also pointed out that small businesses rely on these tailored ads to reach customers effectively with relevant offers. In a statement Facebook said: “For advertisers of all sizes, targeting with precision helps them reach customers who will find their products most useful”.

However, it could have significant implications for companies like Facebook, as Apple’s changes will stop iPhones from automatically sharing data from other apps and websites with ad networks including Facebook ad platform. As a result, according to some estimates, the social media giant could lose up to 44 percent of its mobile money-making capacity in Europe once they’re implemented later this year.

The response is part of a larger strategy outlined by CEO Mark Zuckerberg during his annual F8 developer conference last year, which directly challenges Apple’s ATT feature. Still, sweeping investment into other areas such as eCommerce, augmented reality, gaming and potentially cryptocurrency demonstrates not only how quickly companies have had to move recently but also how big the stakes are.

Impact of the ad campaign

In anticipation of Apple’s upcoming privacy changes, Facebook launched a campaign to defend personalized advertising. The campaign highlights how personalization can “make your life better” and emphasizes the “vast economic benefits” of personalized ads.

The impact of this campaign to Facebook’s business will vary depending on the success of mitigating consumer fears. Apple’s privacy changes, once but in place, would limit the ability to track user behavior across apps and websites, leading to a hit in Facebook’s ad revenues. The campaign’s success may depend on consumer sentiment towards data privacy and their understanding of how personalized ads impact them personally.

If successful, Facebook will be able to continue with their current business model with little interruption; however, if unsuccessful, it could cause a significant decrease in revenues as consumers adopt Apple’s privacy setting/controls or switch platforms due to concerns about data security. As such, this ad campaign is a key part of Facebook’s response strategy and its success or failure could have long term implications for their prospects and growth opportunities.

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Conclusion

In conclusion, Apple’s move to give users more control over their privacy is likely to significantly impact Facebook’s ability to target its ads. As a result, Facebook has been launching a global ad campaign to defend personalized advertising and argue that it should remain part of its business model. The outcome of this situation is uncertain and many observers are watching with interest, as it could have far-reaching implications for the wider advertising industry.

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Sarah Jacobson

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