Apple’s anti tracking strategy has greatly affected Facebook’s advertising business


Tencent technology news on September 28, the application tracking transparency function launched by apple in the IOS 14.5 system update has greatly affected the advertising effect of Facebook. Facebook sent senior managers to persuade advertisers to stick to it this week. Facebook vice presidents, including Simon Whitcombe and Graham Mudd, talked to advertisers about Apple’s application tracking transparency function, which caused direct damage to Facebook’s advertising effect and profits.
“When something really affects their business, they will take action immediately,” said a Facebook advertiser attending the meeting
“Over the past few weeks, everyone has been working together to solve relevant problems,” Mulder said in an interview
Apple’s damage to Facebook does exceed the negative impact on Facebook so far. Apple launched the application tracking transparency function in the IOS 14.5 system update to ask users if they are willing to use the application to track network behavior, which is causing difficulties for advertisers who rely on Facebook to maintain their business. Marketers who want users to buy immediately after clicking are particularly difficult. They believe that the public generally choose not to let Facebook applications track users’ online behavior, so they are not sure whether users will buy their products after seeing advertisements. Facebook also expects these marketers to reduce their expenses.
Aaron Paul, a Facebook marketer, described the situation as “completely blind”. Paul says his company, carousel, has shrunk from spending millions of dollars a day on Facebook to hundreds of thousands of dollars. Before the IOS system adjusted its strategy, 80% of the user traffic introduced by carousel to the product page came from Facebook. Now the proportion is only 20%.
Changes to Apple’s IOS system may cause irreparable damage to Facebook’s advertising business. This also proves to Facebook partners such as Paul that relying on only one channel is risky. So now they all want to diversify their advertising spending. Paul said he has transferred his advertising budget to other places such as snapchat and tiktok, as well as e-mail. When discussing Apple’s strategy adjustment, Facebook marketers almost agreed that they all need to follow suit.
Concerns about whether Facebook can withstand Apple’s strategic adjustment have had a rapid impact on the stock market. Facebook shares fell nearly 4% on Wednesday, and some loyal investors withdrew. “I may have sold nearly half of my positions in the past two days,” said trader Jon najarian, whose second largest stake was Facebook.
Users choose not to accept Facebook tracking online behavior because they no longer trust Facebook. But apple is also adjusting its tracking strategy because its business is directly facing Facebook. Now, apple is competing with Facebook’s instant messaging application and is trying to build its own advertising platform.
Kelsey lehrich, CEO of 365 holdings, which owns e-commerce brands and puts a lot of advertisements on the Internet, said: “I don’t think cook is a person who protects privacy in good faith.” when he talked about large technology companies, he said, “they are making strategic decisions that affect the market, not practical considerations of serving customers or users.” Apple did not respond to a request for comment.
“I think we have expressed our views on the IOS 14 update, and I have nothing more to add at this point,” Facebook’s Mulder said. He expressed the company’s anger at Apple’s strategic adjustment as gently as possible.
Apple’s move has prompted marketers to look for alternatives outside the Facebook channel. Unfortunately, for Facebook, apple happens to be one of the options for marketers.
“Apple is very powerful and everything they do is to build their own advertising platform,” said Paul, a Facebook marketer. “My goal is to let our team learn and master how to operate when a new advertising platform appears. See if this is effective.” (compiled by Tencent technology / Jiao Han)