The new policy of the Apple operating system will lead Facebook to face a significant loss.
Facebook Chief Financial Officer David Wehner. says the new policy will cause a headwind of $10 billion
this year.
Due to the impact of Apple’s updated version, Facebook is expected to lose $10 billion this year. Apple
published an iPhone update last year that included a feature that blocked apps from tracking your
activity across various apps.
Many apps, including meta, used to track users’ operations and functions in other apps, but now Apple
has created a feature for iPhone users that whenever other apps, such as Facebook and others, want to
track records, a pop-up menu will appear asking users to allow or ask the app not to track, giving users
the option to choose.
Because social media giants rely primarily on advertising for their primary revenue, this results in a
significant loss. This will be a difficult assignment for the apps to do.
We may thank Apple for presenting Sheryl Sandburg, Meta’s chief operating officer, with two problems
on the corporate call.”
The first is that the targeting accuracy of our ads has decreased, raising the expense of driving
outcomes, and the second is that measuring those results is challenging. According to Facebook’s Chief
Financial Officer, David Wehner, the new Apple operating system policy will cost the company $10
billion in 2022.
The primary source of gathering advertising data was cut off when Apple added an option to prevent
apps from obtaining tracking data from other apps.
It was part of the iPhone 14.5 update, which was released in April 2021 and required app publishers to
include or display pop-ups asking for permission before tracking users’ app data.
According to estimates, 95 percent of iPhone users who updated their iOS are activating this ad tracking
option, therefore Facebook’s ad revenue analyst, Wehner, predicts a $10 billion drop in revenue in the
following year.
Facebook has acknowledged that the corporation is seeing such a steep drop for the first time in its
history, and the stock market value of Meta has changed dramatically. It’s down 25% from $323 per
share on Wednesday to $245 per share on Thursday morning. Over the course of a single night, this
wiped out $230 billion in market value.
Facebook and Meta are currently bemoaning the reduction in profits. With such a quick rate of change,
the corporation is also attempting to address this disadvantage by restricting the amount of access it
need to promote ads on Apple devices and going in the direction of satisfying and respecting the privacy
of users.
However, it is not a level playing field for all tech giants because Google compensates Apple yearly by
developing its own search engine and putting Google to competition, therefore Wahner concluded that
Apple supports Google’s search advertising business.
After all, the firm stated that they are striving to resolve difficulties in order to reduce the negative
effects and opinions, and that they will continue to work to create advertising that are relevant and
effective for users, as well as to eliminate all redundancies.
