Facebook today announces revenue for the first quarter of 2021 and in a phone call discussing the results, Facebook executives said Apple’s App Tracking Transparency will have a “manageable” impact on Facebook’s business from the second quarter. I confirmed that I would give it.
As ZDNet emphasizes, Facebook CFO Dave Wehner said Facebook “increased ads targeting headwinds in 2021 due to regulatory and platform changes, especially the recently released iOS 14.5 update.” He said he was expecting it. iOS 14.5 is an update that includes App Tracking Transparency, which requires app developers to seek explicit permission before accessing IDFA to track users across apps and websites.
Facebook COO Sheryl Sandberg also said that Facebook has restructured the elements of its advertising platform, claiming that “personalized advertising is good for people and businesses,” and “huge” to prepare for personalized advertising changes. I explained that I am doing a lot of work. “”
We are doing a huge amount of work in preparation. We are working with our customers to implement Apple’s API and a unique aggregate event measurement API to mitigate the impact of iOS 14 changes. By rebuilding the meaningful elements of advertising technology, the system will continue to function even if less data is accessible in the future.
We also participate in initiatives such as privacy-enhancing technology that provides a personalized experience while restricting access to personal information as part of a long-term collaboration with industry groups such as the W3C. Continue to insist that personalized advertising is good for people and businesses, and better explain how it works so that businesses don’t have to understand the acronym alphabet soup they need to follow. That is also our responsibility. But they need to be confident that they can continue to use our tools to reach people who want to buy what they sell in a way that protects their privacy. We are confident that they can do it, and that they can continue to produce great results as digital advertising evolves.
Wener said he believes Facebook’s impact on its “own business” is manageable and that the company’s goal is to maintain and improve advertising performance with less data. He also took the opportunity to criticize Apple’s platform, saying Facebook is also facing problems from Apple’s private APIs that utilize Apple’s own products and services.
Overall, the impact of these particular iOS 14 changes is one of several elements of Apple’s challenges, but we believe the impact of Apple’s approach is far greater than this particular update. .. Apple has a number of private hardware and software APIs that take advantage of its unique products and services in difficult ways. We face that problem in places like messaging products, and even the hardware products we sell. Therefore, we generally do not consider this closed approach to be the best approach for the industry in terms of innovation.
Before the App Tracking Transparency came into force, Facebook launched a campaign to position Apple as an enemy of small businesses, featuring full-page newspaper ads blaming new features. “Apple’s latest update threatens personalized ads that millions of small businesses rely on to find and reach their customers,” read Facebook’s site and “voiced small businesses.” I’m calling for opposition to ATT.
There are questions about Facebook’s description and how the changes will actually affect small businesses, and even Facebook employees have a sympathetic message to “justify doing bad things.” I felt I was using.
Facebook CEO Mark Zuckerberg began downplaying the potential impact of App Tracking Transparency in March, and the change will be final if Apple’s new policy encourages businesses to advertise and sell only through the Facebook platform. Said that it could benefit Facebook.
Facebook has already begun deploying the App Tracking Transparency prompt to Facebook users, but it takes weeks to deploy, so not everyone will see the prompt at this time.
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