Facebook acknowledged this past Wednesday that the upcoming iOS updates set to roll out this upcoming fall will cripple their Audience Network (AN) advertising by more than 50%. The Facebook Audience Network enables mobile device developers to offer personalized user-oriented in-app ads based on Facebook’s data. Essentially, Audience Network is their partnership with other media companies to supply advertising. Facebook’s latest blog post not only highlights the issues they will face due to the drop in AN advertising, but also stated all of their apps will not collect IDFAs.
What exactly is an IDFA?
What is IDFA? Advertisers use a unique device ID number called the IDFA to better target ads and estimate the ads’ effectiveness. With the new iOS 14 updates, each app that wants to use these identifiers (IDFA) will have to ask users to opt in to tracking when the app is first launched. Facebook said in their blog post that none of their apps will collect IDFAs. All of these articles also fail to mention that this only affects their media / publisher partnerships, not advertising in-app.
How does it impact Facebook?
Facebook mentions in their blog post that they remove Audience Network tracking from iOS14 because they believe there is a possibility the iOS updates will render it completely useless. Except, this AN hit will NOT impact advertising on Facebook or Instagram itself. In fact, it will likely increase ad prices on Facebook because there will be less capacity and available ad space.
Will it actually hurt Facebook?
At Loginhood, we believe this could actually strengthen Facebook even more, as alternate options for advertising will diminish, making Facebook and Instagram and other Alphabet Inc. owned apps even more dominant and it will increase competitiveness and ad prices on their apps. Other apps and companies who heavily rely upon Facebook’s AN will be the ones who suffer, not Facebook itself.