Facebook’s Chief Financial Officer has come out and spoken on how Apple’s changes within its upcoming iOS 14 update could hurt Facebook’s ad targeting.
No release is currently scheduled for the iOS 14 software update. Though, it’s already known that Apple plans to ask users if they will allow app developers to track their activity while navigating certain apps and websites. In a report from CNBC, Facebook CFO David Wehner said: “We’re still trying to understand what these changes will look like and how they will impact us and the rest of the industry, but at the very least, it’s going to make it harder for app developers and others to grow using ads on Facebook and elsewhere.”
Facebook’s advertising will likely start to be affected during the third quarter, but expects the impact to be more severe upon the fourth quarter when iOS 14 becomes more widely used. Currently, advertisers use an IDFA ID number associated with a device to target ads more effectively. Upon the release of iOS 14, users will be asked if they want to opt-out from ad tracking when they first launch an app.
Wehner told CNBC, “Our view is that Facebook and targeted ads are a lifeline for small businesses, especially in the time of COVID, and we are concerned that aggressive platform policies will cut at that lifeline at a time when it is so essential to small business growth and recovery.”
Facebook’s expected revenue growth for the third quarter is 10 percent, higher than analyst’s projected 7.9 percent.