Meta, the parent company of Facebook and Instagram, has reported that the new iOS anti-tracking policies by Apple will cause significant losses to the social media giant.
According to the company, its losses in 2022 could be as much as $10 billion after Apple made it difficult for apps to track what users do on other apps and websites.
Apple Hurting Facebook’s Ad Network and The Businesses That Rely On It
During the company’s earnings call, Meta’s Chief Operating Officer, Sheryl Sandberg blamed Apple for creating two challenges for advertisers. “One is that the accuracy of our ads targeting decreased, which increased the cost of driving outcomes. The other is that measuring those outcomes became more difficult,” Sandberg said.
Adding to this, Facebook’s Chief Financial Officer David Wehner said that iOS policy changes will cause a “headwind on [their] business in 2022… on the order of $10 billion.”
Is Apple Doing This For Privacy or To Position Apple Advertising?
While Facebook and Meta users are generally happy that Apple has limited the ability of Facebook, Business owners and ad agencies are feeling the strain. The inability to target users as effectively as previous years is causing CPA’s to rise dramatically and ROAS’ to fall. On the user level, users are still being served the same amount of ads, however they are no longer targeted to their interests.
Additionally, the evolution of Apple Advertising is raising eyebrows of their true intentions. By limiting Facebook’s, Google’s, etc. ability to track while maintaining domination over the phone market, Apple may be positioning to dominate the ad marketplace in upcoming years.
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