iOS14 impact on Facebook ads

iOS 14 was announced at Apple’s Worldwide Developers Conference on June 22, 2020. It significantly raised the bar for privacy when browsing the web and other social media applications as well. One thing that caused quite a stir was that Apple’s new application-tracking transparency measures were introduced with iOS 14.5 and were set to take effect in April 2021.

Tracking on Apple devices running the later version of iOS 14 will eventually be opted in for users when the update is released. So not only Facebook will be affected but Instagram, Snapchat, TikTok, Pinterest and any other app that collects information about its users using third party data will be heavily affected. With each of the apps, you get an option like a prompt asking users whether they want to opt in or out of following this app.

While this may be a boon to many users, this update has impacted numerous applications, most notably Facebook. After iOS 14 version and update to tracking feature, coming to life has a big impact on Facebook ads. Let’s see if Facebook ads are affected by this update.

iOS14 Allow apps to track updates:

An iOS 14 update has an option for the users where they can choose whether their data is used for tracking purposes in their apps and websites or not. Due to tracking limitations, we can safely assume that the size and quality of custom and retargeting audiences will decrease.

Why did Apple choose to update the app tracking feature?

Apple decided to follow a necessary business strategy to make tracking on their platform as an option. Nevertheless, why did Apple suddenly choose to do this? We can only assume that it’s possible that this update would be a response to the controversies surrounding Facebook, which have resurfaced over the past two years. Facebook using each person’s data had created a lot of buzz at the time and people were outraged about it. Increasing public awareness of how Facebook and other social media platforms use people’s data may be why Apple chose to update its privacy policy about tracking user data through social media or other websites. About this feature update, Tim Cook released a statement via his Twitter account:

“We believe that users should have a choice about what data is collected about them and how it is used. Facebook can continue to track users through apps and websites like before, App Tracking Transparency in iOS 14 only requires them to ask for your permission first.

iOS14 impact on Facebook ads

Devices running iOS 14, iPadOS 14, and tvOS 14 or later are affected by the update. The iOS 14 update has no effect on what is tracked on the desktop via the Facebook Pixel. According to a recent survey, only 35% of respondents said they would allow app tracking to see personalized ads, but 59% said they would allow tracking if the app delivers relevant content that way.

Because Facebook data will be somewhat partial, Facebook will be forced to use statistical models to give its advertisers the best estimate for ad reporting. Facebook’s conversion optimization algorithm will also be less effective because the new default attribution windows contain less data to work with.

Apple has limited Facebook advertisers to eight “conversion events” per website, allowing the algorithm to use fewer data points in its optimization processes and impacting smaller advertisers who don’t have a large number of data points with large budgets. The vast majority of iOS users choose not to follow, retargeting audiences are much smaller. In addition, lookalike audiences based on a data source are no longerare tracked correctly, decreasing audience quality and ad performance.

Ads on Facebook are now limited to the following:

For now, advertisers are limited to eight events per domain. Optimizing for events that cannot be found between the 8 events will pause ad sets. You will also be asked to rank eight events in order of importance because if some users opt out, you will only receive information about one event. One ad account per app. There is a limit of 14 events that can be tracked. There is a limit of 9 campaigns and 5 ad sets per campaign. Conversations initiated by users who chose to opt out of tracking on iOS 14 through a Facebook ad will not be tracked. There is no more real-time reporting and data is delayed by up to three days. Pixels are limited to eight call events. Facebook’s app and web conversions no longer provide iOS 14 user delivery reporting and action breakdowns. Age, gender, region, and ad placement are all factors. The conversation window for iOS 14 will be seven days instead of 28. With the new seven-day attribution window, Facebook needs a minimum of 100 conversions to have enough data to optimize for value, which may not be enough.

How much impact will it have on Facebook ads:

This update will almost certainly change the internet as we know it. It can be both positive and negative. Apple’s change limits their ability to display personalized ads. To make up for the financial loss, many would have to start charging the subscription and adding more in-app purchases, making internet use more expensive and decreasing in quality.

Without Personalized Ads According to data from Facebook, the average small business that relies on Facebook ad revenue could see more than a 60% drop in revenue for every dollar spent. While restricting the use of personalized ads affects larger businesses like Facebook and other applications, these changes will no doubt be devastating for them and for the small businesses that run their ads on Facebook.

Until next time, with a different topic. Until then, Toodles.

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