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Facebook Warns New iPhone Update Will Cripple Ad Sales

Social media giant, Facebook, has warned Apple’s new iOS 14 update will hurt its online advertising business, impairing the efficiency of targeted ads for brands and developers too.

Disclosed in a company blog post, Facebook asserts forthcoming changes to iOS 14 will hinder and limit its ability to deliver targeted ads – “others may still see ads from us, but they’ll be less relevant.”

The post also sought to inform developers that an implication of the update would likely be decreased advertising revenue for them.

The news comes after a beta version of iOS 14 was released to developers, with new features including ‘anti-tracking’ initiatives to reduce advertisers’ ability to data collect and present highly targeted ads.

The social media giant is concerned about the update’s impact on its Audience Network advertising business which market commentators predict generates billions of dollars annually.

The division allows Facebook to deliver advertisements to users via external apps which they’ve connected their Facebook account.

Facebook has warned in testing it noticed a “more than 50% drop in Audience Network publisher revenue when personalization was removed from mobile app ad install campaigns.”

Apple is yet to officially comment on Facebook’s concerns.

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