As Apple has made its stance clear about app tracking transparency policy, Facebook and other companies have been fearing a major revenue loss. Apple will begin to require that all App Store apps show a discouraging prompt to users on iOS 14 devices, in accordance with their app tracking transparency framework.
In the “CFO outlook” section of the earnings release, Facebook accepted, it will be facing “more significant advertising headwinds” this year.“This includes the impact of platform changes, notably iOS 14, as well as the evolving regulatory landscape. While the timing of the iOS 14 changes remains uncertain, we would expect to see an impact beginning late in the first quarter,” the company said in the release.Facebook has also started a campaign against Apple’s upcoming privacy changes, requiring app developers to ask users for permission to use their IDFA identifiers for ad targeting.
Since the pandemic, there has been a shift towards more online commerce and businesses. Companies are focusing on their online strategies rather than offline. In this scenario, the policy update may seriously hamper Facebook and its other ad revenue growth products.
“We had a strong end to the year as people and businesses continued to use our services during these challenging times. I am excited about our product roadmap for 2021 as we build new and meaningful ways to create economic opportunity, build community and help people just have fun,” said CEO Mark Zuckerberg in a statement.