How will Apple’s new privacy feature affect Facebook and Snapchat?

Tech companies are gearing up to handle the new privacy feature that Apple intends to introduce in the upcoming iOS 14 operating system update. This new feature requires developers to request explicit permission to follow. iOS device users across apps and sites via the IDFA digital advertising identifier, analysts said. Some online advertising companies, such as: Facebook and Snap, will be more affected by this feature than other companies.
The plan called for the feature to launch with iOS 14, but Apple announced last September that it was delaying the launch of the feature until some time in this year 2021, in order to give developers more time to comply.

How will Apple’s new privacy feature affect Facebook and Snap?

Apple will offer two options to choose from, one of which is: explicitly reject and block any app that attempts to track users by collecting their personal data to target them with advertisements. This means that the new feature allows users to share their own Advertising Identifier (IDFA).
Where you will be asked before using an app to enable or not enable the tracking feature. Although it is expected that most users will choose the option to ask the app to Don’t Track, companies like Facebook are concerned that it will affect their business model, and thus limit their ability to target you with ads, which is the core of their business.
Companies that use ads as their current business model use this identifier, when available, to target you with ads and measure their effectiveness. So this change should drastically affect the ability of advertisers to target ads the way they do, as most users should turn off the option to track them.
Analysts said they have developed a framework based on seven factors to determine the risks of change for online advertising companies: domain, access to first party data, use of iPhones, and relative contribution to revenue from installation ads. ‘applications, outdoor advertisements and advertisements. Ads bought by small businesses and ads bought by businesses that rely heavily on attracting users to pay, especially businesses developing games applications and video streaming.
Based on those criteria, analysts found that Facebook and Snap would be among the companies whose profits will be most affected by Apple’s new privacy changes, followed by Twitter and Pinterest, while analysts found that Amazon and Google are said to be among the least affected companies.
In a note released in December last year, analysts at Bank of America also said, “Facebook and Snap are most vulnerable to implementing these changes, which could lead to a 3% drop in revenue for Facebook and 5% for Snap. ” They also mentioned that Twitter will see a decrease in app downloads, but that’s relatively small compared to Facebook and Snap.

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