Iphone, that’s why Facebook and Apple are fighting over advertisements
Facebook warns advertisers about Apple's privacy changes on iOS 14: Ad revenue could be halved. Facts, comments and analysis on the diatribe
Don't touch my adv.
Facebook lashes out at Apple over the anti-tracking feature of the new iOS 14 operating system.
Mark Zuckerberg's social giant has warned its advertising partners that they should expect their ability to monetize effectively on Audience Network to diminish.
Menlo Park's group says Apple's changes will affect its Audience Network activity, which connects users' Facebook identities with their off-platform activities.
The changes will take effect with Apple's new operating system for the iPhone, called iOS14, released in beta to developers this week.
“IOS 14 will hurt many of our developers and publishers at an already difficult time for businesses,” said the Zuckerberg-based company.
Despite the announcement, Facebook shares gained more than 8% on the market on Wednesday .
THE FACEBOOK AUDIENCE NETWORK
Facebook's Audience Network enables mobile software developers to deliver targeted in-app advertising to users based on Facebook data.
Today, advertisers can use a unique device ID number called IDFA to better target ads and estimate their effectiveness.
WHAT APPLE PROVIDES FOR IOS14
But Apple has a hand in it. With the changes coming with iOS 14 software, each app that wants to use these identifiers will ask users to turn on tracking when the app is first launched.
"With iOS 14, iPadOS 14 and tvOS 14, you will need to receive user authorization through the App Tracking Transparency framework to track them or access their device's advertising identifier," Apple said in an online post to developers.
Apple is expected to release the new iOs mobile operating system by the end of the year.
FACEBOOK CHANGES
Facebook on Wednesday said it will stop using Apple's old tracking tools in its apps and adopt Apple's new offering.
… THE COMPLAINTS …
Facebook has announced that it will adapt to the changes, not without grumbling. The social network has published a blog post outlining the steps required to ensure its advertising activity complies with Apple's requirements. These steps will limit the effectiveness with which Facebook and its advertisers can target ads to iPhone and iPad users.
“While it's hard to quantify the impact on publishers and developers at this point with so many unknowns, in testing we saw a more than 50% drop in Audience Network publisher revenue when personalization was removed from ad install campaigns. furnishings". We read in the post published by Facebook.
“In reality, the impact on Audience Network on iOS 14 could be much greater, so we're working on short- and long-term strategies to support publishers through these changes,” Facebook added in the post.
… AND THREATS
"In the end," the Menlo Park group said, "despite our best efforts, Apple's updates could make Audience Network so ineffective on iOS 14 that it may not make sense to offer it on iOS 14."
TARGETED ADS ON ANDROID SMARTPHONE
However, Facebook's system will still be able to target ads in apps made for Android smartphones or tablets. He insured Mark Zuckerberg's company.
COMPARING BUSINESS MODELS
Facebook paid $ 1.5 billion to developers and publishers for the right to show ads on their platforms in 2018 in 2018. Apple has criticized the data collection operation that underlies Facebook's huge advertising activity.
Facebook derives nearly all of its revenue from advertising, but it is not known what percentage is attributable to the Audience Network compared to ads on Facebook and other properties.
On the other hand, Apple, which does not rely on digital ad revenue, has worked to limit monitoring of online activities and has stressed user privacy as a priority.
In August, the Cupertino giant reached a record capitalization. Apple is the first US company to exceed $ 2 trillion.
APPLE'S ATTENTION TO USER PRIVACY
But what's behind Apple's strategy? The Cupertino company previously provided a tool called the Advertiser Identifier, or IDFA, that allowed Facebook and others to engage in such user tracking through apps.
But in June, the iPhone maker said that such activity will require consent from users. Digital advertising companies expect most users to refuse to grant such permission.
OR YOUR OWN POCKETS?
As Reuters reported, John Nardone, CEO of ad-serving software company Flashtalking, said Apple's decision to curtail its advertising business could be seen as anti-competitive by raising prices for consumers accustomed to free apps. and ad-supported.
"There is a personal interest in Apple doing this because, as the ad revenue stream becomes more difficult, apps have to charge users and Apple, as evidenced by the case of Epic Games , takes 30%," Nardone said. "Apple does not have a stake in ads, but does have a stake in paid apps."
THE FORTNITE CASE
In mid-August Epic Games, creator of the video game Fortnite, sued Apple for the way it runs its App store, accusing the Cupertino giant of exercising monopoly power. Epic Games has asked a federal judge to order Apple to stop its "anti-competitive conduct" and to cancel the tech giant's rules that require app developers to pay 30% of transactions to do business on the App Store.
The lawsuit was filed on the same day Apple withdrew Fortnite from the online market. Epic Games had added a payment system that allowed player transactions to bypass the App Store system, saving money in the process.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/iphone-ecco-perche-facebook-e-apple-guerreggiano-sugli-annunci-pubblicitari/ on Thu, 27 Aug 2020 13:00:41 +0000.