Facebook

Facebook ad business impacted by Apple new privacy restrictions

Technology

Because fewer data could be collected, Facebook claimed Wednesday that Apple’s iPhone privacy reforms, which allow users to block monitoring, significantly impacted its advertising income.

Apple’s action earlier this year ignited a feud with Facebook and other tech rivals, and it might have significant repercussions for data privacy and the mobile ecosystem.

“Many of you have told us that the impact on your advertising expenditure has been bigger than you anticipated,” Facebook’s product marketing VP Graham Mudd wrote to advertisers.

“The cost of attaining your business objective may have increased, and measuring your campaigns on our platform has become more difficult,” he added.

Shortly after the terrible news from Facebook, the social media behemoth’s shares dropped 4% to $342.90 on the Nasdaq.

Apple started requiring apps to inform users of their mobile devices about the tracking data they wish to gather and obtain permission.

Opting out of being tracked makes it more difficult for firms like Facebook to target the adverts that generate income.

It’s more challenging to measure the efficacy of an ad when you can’t tell whether the Facebook user then went to the advertiser’s app or website or even made a purchase.