The new privacy protection function “App Tracking Transparency” implemented with iOS 14.5 is apparently causing Facebook more than expected. Graham Mudd, Facebook’s vice president of product marketing, highlighted in a blog entry that App Tracking Transparency is significantly affecting the company’s advertising business.
Facebook highlights that Apple’s new tools have made it more difficult to measure campaigns on the platform, and that has caused many advertisers to increase their advertising investment to meet their objectives. “We’ve heard from many of you that the impact on your advertising investment has been greater than you expected. The cost of achieving your business outcome may have increased, and it’s also gotten harder to measure your campaigns on our platform.”
The company also assures that it has not been correctly reporting on web conversions, something that has also considerably affected advertisers. “We believe that real-world conversions, like sales and app installs, are higher than what is being reported for many advertisers.” Mudd details. This has made the performance measure, on average, 15% worse than it could have been.
At the same time, those responsible are trying to spread optimism that the efforts to develop new technologies to improve data protection will soon bear fruit. The aim is to minimize the amount of personal data processed and still create the possibility of showing personalized advertising and measuring its effectiveness. The company also stated that the poorer results are partly due to fewer reports on the social network.
On its blog, Facebook offers some details to improve the reach of the ads. It also confirms that it is working on “new technologies” that will allow the display of personalized advertising while respecting privacy.
In order not to suffer any losses, Facebook, as well as, Instagram developed a certain “strategy” — when the program started, the company gave the impression that Facebook would run the risk without consent, no longer in the future to be free. This procedure is allowed by Apple, but Facebook went a step further and linked the use of both apps to the approval for tracking. At the same time, the company threatened an antitrust lawsuit against Apple.