How Apple’s changes can severely limit your marketing efforts on Facebook
In June, Apple announced product and policy changes at its annual Worldwide Developers Conference (WWDC) that will affect data sharing on iOS. The limits of advertising will affect the growth of small businesses and the free internet.
Facebook believes that free, ad-supported businesses are critical to the growth and vitality of the Internet, and that personalized ads and user privacy can coexist. We support proactive data protection measures and data transparency, but we do not agree to Apple’s policy changes.
Effects on Personalized Ads:
The changes Apple proposed will limit your ability to effectively reach, understand, and engage people on mobile and the web. They affect your ability to understand performance, control who sees your ads, and make informed decisions about your advertising budgets. When these changes take effect, there may be an overall decrease in ad performance and personalization, and an increase in the cost-per-action over time.
Facebook is also highlighting this issue in their business manager:
In particular, these changes will limit your ability:
- Effectively serve ads to people based on their level of engagement with your business
- Measure and report on conversions from specific customers
- Make sure your ads are being served to the most relevant audiences with the right frequency
- Accurate attribute app installs for users with iOS 14 and above
- Forecast and optimize cost-per-action over time and efficiently allocate budgets
Apple’s guidelines will make it much harder for small businesses to reach their target audience, which will limit their growth and ability to compete with large companies. For example, our studies show that when small businesses ran ads on the Facebook family of apps to drive sales on their websites, they averaged over 60% of their revenue for every dollar they spent when they weren’t can use their own data to find customers on Facebook1. For example, right now, a local bookstore could spend $ 50 on a relevant and personalized ad and win five sales. Without using their own data to personalize an ad, this company would spend $ 50 and potentially only make two sales. Facebook does not expect the proposed changes to iOS 14 to result in a complete loss of personalization, but are a step in that direction.
Without the predictable costs and personalized ads you are used to creating and serving, many new products and services would never hit the market. Facebook believes in the opportunity for new ad-supported businesses to start and grow, but Facebook disagrees with Apple’s attempt to disrupt the online ad ecosystem and the associated and sustainable small business opportunities it offers.