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With nearly 3 billion users, Facebook (NASDAQ: FB) is one of the most popular Internet sites in the world. Facebook not only attracts billions of users a month, but also collects giant amounts of knowledge based on user profiles. transformed its vast wealth of users and knowledge into a gold mine for advertisers.
However, the golden age of advertising on Facebook may be coming to an end. In fact, Apple (NASDAQ: AAPL) is implementing settings that will restrict the knowledge advertisers will want to track the behavior of online users. IDFA, which is a key tool for targeting users for advertising purposes.
Will Apple kill facebook’s egg hen?
IdFA is an identification code assigned to each iPhone, iPad, Mac, and Apple TV. Following IDFA, marketing specialists can locate which Internet sites a device has visited, which apps a device has downloaded, and which classified ads a device has. This allows advertisers to target products that may be of interest to a user based on their behavior beyond the Internet.
Historically, Apple has provided advertisers with virtually unlimited access to IDFA, however, with the upcoming iOS Edition 14 update, iPhone users will have to agree to allow advertisers to access their knowledge. Activation will prompt users to give access to Your usage knowledge to each of the mobile apps that request access to it. Changing IDFA access from a default value to an optional one causes many users to choose not to participate. This can make IDFA targeting much less applicable than in the past.
Online advertising corporations like Facebook have based much of their advertising team on targeting users through the use of IDFA. As a result, Apple’s settings may end up disrupting the entire online advertising ecosystem. Adjustments are probably a transparent victory for the consumer. , as they will decorate the privacy and security of iOS users. It may not be unexpected that what’s bad for Facebook is smart for the average consumer.
Facebook does not disclose the duration of its iPhone advertising business, however, we know that in the last quarter, Facebook generated 40% of its revenue in the United States, almost all of that advertising revenue, in addition to about 45% of smartphone users. in the United States they use an iPhone, according to eMarketer data, so it would be wise to say that IDFA settings will have an effect on a giant part of Facebook’s user base, which can constitute only several billion annual advertising revenue. .
Facebook isn’t just going to let your business suffer. The company continues to seek cutting-edge tactics in its advertising, with or without IDFA. For example, Facebook encourages Internet sites to insert a code that will inform the Facebook ad network when users have taken action (such as downloading an app or creating a If enough Internet sites report the user’s habit on the Facebook network, Facebook can expand its own choice ID.
Somehow, Facebook benefits from IDFA changes. IDFA is basically useful because it helps Facebook identify user activity that occurs outside the Facebook platform. However, even without IDFA, Facebook can still track what users are doing on its platforms. This can make Facebook an exclusive, more valuable knowledge of what it used to be, as there are fewer knowledge issues that need to be used for targeting.
Disruption of Facebook’s advertising activity can also drive the company to expand its non-advertising business. The company has introduced a small business e-commerce initiative called Facebook Shops, which allows merchants to sell products from their Facebook pages. Facebook can turn lemons into lemonade by starting new businesses.
Of course, Facebook has a unique location because it has a giant user base and massive capital to invest in new solutions. Small websites that don’t have a deep wallet can see their ad revenue decrease if their classified ads become less effective. They have truly discovered that their consumers on Facebook are also at risk of wasting themselves if they cease to be a productive channel with mobile advertising.
Apple’s adjustments to its cellular advertising teams are creating some uncertainty for Facebook in 2021, however, Facebook is a disjointed and agile corporation that, at least historically, has done a task of adapting to its environment, for example, several years ago, the corporate effectively went from focusing on desktops to prioritizing cell phones. I wouldn’t object to Facebook to find a way to run your advertising business on iPhone, even without IDFA.