Apple's new policy on advertising on iOS will disrupt business of app developers: Facebook

Social Media giant Facebook has opined that the latest attempt by Apple to curb ads on its devices such as iPhones and iPads will reduce the revenue for App makers on Apple's operating system.

Facebook warned Apple that the move could jeopardise hundreds of millions of dollars in revenues for Facebook and thousands of smaller companies that use its ad network.

Apple is introducing a new update on iOS 14 which it announced in June. The update will require apps to obtain user's permission before gathering data that allows tracking and ad targeting. This will be done via a window pop up. The social network in its blog post has said that it expects these changes will disproportionately affect Audience Network given its heavy dependence on app advertising.

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'50% drop in revenue'

Facebook said the changes would damage the business of publishers and app developers that use Facebook's advertising system within their own apps which the social media giant calls Audience Network.

"Like all ad networks on iOS 14, advertiser ability to accurately target and measure their campaigns on Audience Network will be impacted, and as a result publishers should expect their ability to effectively monetize on Audience Network to decrease. Ultimately, despite our best efforts, Apple’s updates may render Audience Network so ineffective on iOS 14 that it may not make sense to offer it on iOS 14," an excerpt from the blog post read.

Facebook itself tested the impact on the new update. It has estimated a 50% drop in the revenue publishers from Audience Network.

"While it’s difficult to quantify the impact to publishers and developers at this point with so many unknowns, in testing we’ve seen more than a 50% drop in Audience Network publisher revenue when personalization was removed from mobile app ad install campaigns. In reality, the impact to Audience Network on iOS 14 may be much more, so we are working on short-and long-term strategies to support publishers through these changes." Facebook said in its blog.

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