Facebook warns that new privacy protections in iOS 14 will hurt parts of its business

Facebook announced today the key steps it is taking to address major privacy changes introduced by iOS 14. Announced in June, Apple's latest operating system for iPhone will make it harder for businesses to track user data by preventing apps from collecting those data using Apple’s device identifier without their consent.

The social networking giant said it will stop collecting the identifier for advertisers (IDFA) on its apps on devices that are eligible for iOS 14. Facebook's Audience Network uses IDFA to personalize third-party app advertising. The company denounced the upcoming change, noting that it would limit the advertisers’ ability to target and measure their ads on iOS 14. As a result, app developers and publishers will see reduced CPMs on Audience Network and possibly on other ad networks on iOS.

Facebook said in a blog post:

"This is not a change we want to make, but unfortunately Apple’s updates to iOS14 have forced this decision. We know this may severely impact publishers’ ability to monetize through Audience Network on iOS 14, and, despite our best efforts, may render Audience Network so ineffective on iOS 14 that it may not make sense to offer it on iOS 14 in the future."

The Menlo Park-based company also noted that, based on its tests, this change reduced the advertisers' revenues on iOS by up to 50% because of the removal of personalization in mobile ad install campaigns. Facebook added that its actual impact on publishers that rely on Audience Network may be even worse.

Facebook is now developing short-and long-term strategies to support publishers as these changes take effect. As part of that preparation, the firm plans to update the Facebook SDK in compliance with the iOS 14 limitations. It will also ask companies to set up a new ad account for running app install ad campaigns for iOS 14 users.

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