Facebook's business model to be collapsed by Apple

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Facebook is in trouble with Apple’s iOS 14 software update that will start rolling out to users across the world in a few months. The latest version of Apple’s iPhone operating system has one feature that could potentially damage the social network’s business model, at least among those using iOS devices. Once on the latest version of the software, Apple will give users the choice to decide whether they can be tracked across apps using a unique identifier.

At WWDC, Apple’s annual developer conference, the company announced that with iOS 14, users will get a pop up asking them if they want to be tracked by a specific app. Since this will also give users the freedom to say no, it will cut the amount of data an app like Facebook is able to collect about a specific user with the help of unique identifiers. While this will help preserve consumer privacy, for apps like Facebook it will reduce the effectiveness of ad campaigns via its Audience Network as it will reduce attribution that helps identify if an ad was successful in triggering an app install or payment.

Google uses a similar tech called Google Play Services ID for Android (GPS ADID) and even gives users the ability to reset this from their settings. However, the options are not shown to the user like Apple wants to. The fear is that if given a choice, most users will say no to tracking.

We hope that we have provided useful information to you.

 

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