Due to the effect of the updated version of Apple, Facebook has to face a loss of $10 billion this year. Last year, Apple released an updated version of the iPhone that included a feature that prevented apps from tracking your actions across multiple apps.
Before many apps, along with meta, used to track the operations and functions of users in other apps, but now Apple for its iPhone users created a function that whenever other apps like Facebook and others want to track records, a pop-up menu will be displayed in which they ask users to allow or ask the app not to track, where users have their own choice to choose.
This leads to a great loss for social media giants as they solely depend on advertising for their primary revenue. This will not be an easy task for the apps to face.
FACEBOOK VALUE DROPPED BY $200 BILLION IN META-SHARE, THE HIGHEST EVER
We can blame Apple for creating two challenges for Meta chief operating officer, Sheryl Sandburg during the company call.”
The first is that our ads’ targeting accuracy has deteriorated, increasing the cost of driving results, and the second is that it is difficult to measure those results.
As per the Chief Financial Officer of Facebook, David Wehner, the new policy of the Apple operating system will cause a headwind of $10 billion in 2022.
When Apple introduced an option to cut apps from accessing tracking over other apps, the primary source of collecting advertising data was cut off. It was a part of updating the iPhone version 14.5 launched in April 2021, which forced app publishers to include or display pop-ups asking permission before tracking users’ apps information.
As per the reports, 95% of iPhone users who updated their iOS are using this ad tracking option, so there is a prediction made by Facebook’s ad revenue expert, Wehner, that it will decline by $10 billion in the coming year.
Facebook has revealed that the company facing such a drastic decrease is considered the first time in its lifetime, and the share value of Meta in the stock market has seen a very drastic change. It has dropped by 25%, from $323 per share on Wednesday to $245 on Thursday morning. That swabbed $230 billion in market value over a night.
DOES APPLE FAVOURS ADS RUN BY GOOGLE
As of now, Facebook and Meta are in sorrow about the decline in profits. With a high change, the company is also working to overcome this drawback by limiting how much access it needs to promote ads on Apple devices and moving in a direction where they need to satisfy and respect the user’s privacy.
But, it is not fair play with all the tech giants because Google compensates Apple yearly by making a search engine of its own and giving competition to Google, so on paying a glance at this, Wahner said that Apple favors the search advertising business run by Google.
Well, after all, the company addressed that they are working out issues to alleviate those impacts and opinions and will continue to work to make ads that are relevant and effective for users and eliminate all redundancies.
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