Why is Apple releasing a privacy-focused update and why is Facebook spending enormous amounts of money to object? It affects the core of both of their business models.
Apple has positioned itself as the privacy champion in the digital space. I do believe this will be a winning bet for the company to make. And much like other seismic shifts Apple makes expect the other tech companies to follow suit after Apple has set the standard. Also, while this may seem like a moral high ground move, it is ultimately a business decision.
With the release of iOS 14.5 Apple is taking the first big shot in the tech world against the way the system of internet advertising has been run. Here is a summary:
-iOS is on somewhere between 40-60% of the smartphone market in the US.
-The way iOS addresses things will affect how others in the space behave.
-iOS14.5 has a privacy update that does not allow apps to track you unless you opt-in.
-Previously apps would track you by default, now they require permission to track from the default.
-Facebook and the internet has almost always worked on an opt-out model, so you were by default being tracked.
What it’s not:
The end of Facebook advertising. You can still target those who are already your customers with permission. This primarily affects third party advertisers like companies that most people have never heard of. Facebook will still have lots of data on its users to use for targeting but third-party sites may have less info to work off of.
What the results of this going to be?
More paid apps, less targeted advertising, more privacy online, more income for Apple via the app store and less income for Facebook and other digital advertisers. Delayed results and less accurate results from ad campaigns.
What to do?
If you are running eCommerce conversions or app conversions, read up more on Facebook’s news releases. If you are running web conversions, be sure to verify your domain. Consider investing in Email Marketing and Google ads as we are unsure of how much damage this will do to Facebook ad campaigns.
For further reading:
Facebook Releases- https://www.facebook.com/business/help/331612538028890?id=428636648170202
Apple Releases- https://developer.apple.com/app-store/user-privacy-and-data-use/
