Facebook hits Apple privacy-update ad $queeze

Facebook on Wednesday warned developers that a new Apple privacy update would likely harm its ability to get targeted ads in front of iPhone users.

The social network said in a blog post that forthcoming changes in Apple’s new iOS 14 iPhone and iPad software could render its Audience Network system “so ineffective on iOS 14 that it may not make sense to offer it.”

The system currently allows Facebook

to connect users’ off-Facebook activities with their profile to better serve personalized ads. But with Apple doubling down on privacy, Facebook’s tools will be limited.

“Because of advertisers’ reduced ability to accurately target and measure their campaigns, app developers and publishers should expect lower [user views] on Audience Network and likely other ad networks on iOS,”

Facebook said, referring to the return on investment for ad campaigns.

In internal testing, Facebook said it has seen “more than a 50 percent drop in Audience Network publisher revenue when personalization was removed” from the equation.

The company took a jab at Apple, saying “we understand that iOS 14 hurt many of our developers and publishers at an already difficult time for businesses,” and added “many of these are small businesses that depend on ads to support their livelihood.”

Apple could not immediately be reached for comment.

Facebook shares were up 5.4 percent Wednesday afternoon despite the iOS 14 news, following the company’s announcement that it was expanding its e-tail capabilities in its Facebook and Instagram apps.