How Apple's Privacy Decision Threatens Billions In Facebook Revenue As Of September 2020
Facebook could lose billions in revenue as Apple cripples the IDFA, especially if Google follows ... suit with the GAID. Photo by Barefoot Communications on Unsplash Facebook is one of the two most dominant companies in an $80 billion industry that impacts hundreds of billions of dollars, if not trillions, in consumer spend. But a huge percentage of that revenue is now at risk, thanks to an obscure privacy move by Apple at the company’s World Wide Developer Conference in June. The move? Deprecating a mobile device identifier called the IDFA. It’s a super-geeky term in a super-geeky industry: mobile advertising. But it represents a sea change in how advertisers and ad networks target ads to consumers. Good targeting leads to relevant advertising and high returns for both the advertiser and the ad network. Poor targeting? It’s literally worth 50% less by Facebook’s own numbers. The IDFA is the Identifier for Advertisers, and in every existing version of Apple mobile operating system for iPhones and iPads, it’s visible to ad networks and mobile advertisers. Unless consumers opt out in a little-seen out-of-the-way setting, which only about 30% of iPhone users have bothered to turn off. Facebook uses the IDFA — and the Android equivalent from Google, GAID — to accumulate data on what billions of people do in apps. Facebook then uses that data to target app install ads (ads that are aimed at getting you to install a new app or game). Because they have so much data via the IDFA, Facebook is likely to be able to find the people who are most likely to install the app and do specific things inside it. MORE FROM FORBESApple Just Crippled IDFA, Sending An $80 Billion Industry Into UpheavalBy John KoetsierLike register. Or buy something. Or complete a level…
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