The latest update on the iOS platforms strikes a knife at the heart of Facebook’s advertising. Apple and Facebook are two large tech giants in Silicon Valley. Apple mostly generates profit through iPhones, iPods, Mac computers, AirPods, and other accessories. Meanwhile, Facebook only sells few devices and instead generates money through target online advertising.
IDFA (identifier for advertisers) is a process to target ads and estimate their effectiveness. IDFA can also be paired with another tech, such as Facebook tracking pixel or tracking cookies, which allows learning more about you.
The new iOS update however will make the app tracking transparency on default which will force developers to explicitly ask for permission from the users to use the IDFA and statistics state that up to 80% of users will say no. Apple always has had a strict policy on their privacy concern to their customers, even their safari web browser blocks third-party cookies by default.
On the other hand, Facebook has released a statement in their new blog saying that this new iOS update by apple will affect small business owners, and sharing data with advertisers is key to giving users a better experience.
Facebook went a step further accusing Apple of being hypocritical as this will force business to turn into subscription from which Apple will take a cut. During the recent pandemic, the only way small businesses survived was through Facebook’s targeted ads connecting vendors to the correct audience generating business.
This is a controversial situation for both Apple and Facebook, even though Facebook has strongly criticized Apple’s new update and Apple doing the same criticizing Facebook’s privacy breach of user data without users’ clear approval both these multinational companies are solely thinking of their benefit