Facebook advertisers concerned about the number of users asking not to be tracked
Changes to iOS 14.5's privacy terms on iPhone continue to cause problems for Facebook, especially users who ask not to be tracked. According to a survey by market intelligence company Branch, the deactivation of tracking system of devices would be affecting the performance of advertisers on the social network.
iOS 14.5 adopts a new security protocol named by Apple de Transparency Tracking App (ATT) and allows iPhone owners to determine the privacy levels of each application, forcing developers to be more clear about how each service uses the data collected. It also allows users to disable features such as storing their habits, as well as the location of whoever is using their smartphone.
According to Branch's survey, after the updates, only 25% of iPhone owners allowed Facebook to collect their data. This drop would be affecting the platform's profits, since one of the main models of your business is creating ads that take advantage of users' habits, interests and location to connect them with brands.
Impact on advertising
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The research indicates that Facebook's losses were already accounted for in the first year after the iPhone update. Advertising companies are reportedly reducing their investments in the platform, claiming that Facebook is no longer as reliable as the return on their ads.
According to advertisers, in the United States, the conversion rate of sales derived from Facebook ads has decreased from 95% to approximately 64% in accounts of large retailers. That is, companies that invest an average of more than US$ 1 million (approximately R$ 5,3 million) per month. In the case of small companies, the drop can reach up to 64%.
Loss was predicted by Facebook
While Facebook declines to disclose the exact percentage of iPhone users that have adopted the ATT protocol, Branch stipulates that if only 10% of smartphone owners Apple opting not to have your data tracked, the impact on the social network will be a drop of approximately 13,6% in revenue generated per user.
Confirmation of this survey should happen at the end of the month, when Facebook will finalize the quarterly cost and profit balance to present the results to investors. Despite the losses, everything indicates that Facebook had already anticipated such a loss and tried to change the profit format of its business.
In addition to expanding the social network's operations as a platform with new entertainment tools, which will monetize creators in live streams, videos and podcasts, Mark Zuckerberg's group has increasingly demonstrated its priority in relation to Instagram, which also underwent changes in its business plan last month, declaring that it will no longer be a platform focused on photos but rather on prioritize video content once and for all.
Through which channels you reach those people, classic and out of the box. Bloomberg
