Facebook today provided updates on how Apple’s privacy changes have affected the advertising business. The company has already warned investors during its second-quarter earnings that it expects to have an even greater impact on its advertising targeting business by the third quarter. I repeated that this morning, saying that advertisers believed the impact was even worse than expected, as iOS web conversions were underreported by about 15%.
According to Facebook’s announcement published on the business blog, this exact percentage can vary widely from individual advertiser to individual advertiser. However, it states that actual conversions, such as sales and app installs, are likely to be higher than what advertisers are seeing when using Facebook analytics.
At the time of writing this news, Facebook’s share price has fallen by nearly 4%.
This isn’t the first time Facebook has shared a misleading metric. However, in the past, class action proceedings have occurred due to the swelling of video advertising indicators and the lack of prompt action to fix the problem. However, in this case, the problem with metrics is not to make Facebook look good, but to make it worse. The company said it has heard from the advertising community that it has had a greater impact than planned on advertising investment in the network, raising concerns.
Facebook has provided advertisers with some tips to help them better understand the impact and performance of campaigns in this new era. Instead of doing a daily assessment as before, we suggested waiting at least 72 hours or the overall length of the optimization window before assessing performance. It also states that some presumed conversations are reported late, so advertisers should analyze their reports at the campaign level when possible. Advertisers also suggested choosing the web events that best match their core business, such as purchases and sign-ups.
Facebook is working on improving conversion modeling to address issues related to improved measurements, accelerating investment to address reporting gaps, launching new features to track web conversions, and already an app He said he is expanding the ability to measure internal conversions. It is installed. The company said it would work swiftly to fix bugs, including a bug that recently led to an underreporting of about 10% that was previously shared with advertisers.
In August, the company explained how it is working to adapt its personalized advertising business in the light of both Apple’s and Google’s changing privacy and new regulatory conditions, but those efforts will take time. Said.
In addition to the advertising technology update itself, Facebook is also working on new products that will allow advertisers to better position themselves in front of consumers browsing Facebook apps. For example, last week we revamped our line of business tools, introduced new features, expanded smaller tests, and increased the way we discover our business. One such test in the United States directs consumers to other businesses and topics just below news feed posts. Companies have also added WhatsApp buttons to their Instagram profiles to allow them to create ads that send Instagram users to WhatsApp Business Chat.
Facebook has warned advertisers that Apple’s new privacy feature, which allows mobile users to opt out of tracking across iOS apps, can cause problems in the normal way of operating their ad targeting business. I did. He repeatedly argued that Apple’s changes would affect small businesses that rely on Facebook ads to reach their customers. When the changes were implemented, Facebook’s concerns were verified. According to a survey, few consumers chose to track on iOS.
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