Former Employees Explain What Facebook Has to Lose When Apple Implements App Tracking Transparency

As Apple prepares to implement App Tracking Transparency changes in iOS 14.5, CNBC spoke with several former Facebook employees to get details on why Facebook has been so heavily against the planned privacy updates.

Apple vs Facebook feature
Starting this spring, Facebook and other app developers will need to get express permission to access a user's advertising identifier, or IDFA, which is used to track usage across apps and websites for ad targeting purposes. Facebook has campaigned heavily against App Tracking Transparency, taking out full page newspaper ads and attempting to position Apple as an enemy of small businesses.

One of Facebook's main arguments is that Apple's changes will hurt businesses that use Facebook's advertising tools, but former Facebook employee Henry Love told CNBC that for many businesses, the change might not even be noticeable.

Less ad tracking data will prevent Facebook and its clients from targeting ads as effectively as they can now, but a lot of businesses may not need much data for effective ad targeting. A small coffee shop in Texas, for example, likely uses broad targeting categories like zip code and age range for ads, which is data that Facebook can collect from its own apps without the need for the IDFA.

"If you talked to any restaurant owner anywhere and asked them what IDFA is, I don't think any of them would know what that is," Love said. "It's affecting Facebook at scale. Not the small business owners."

Among the few "small business owners" who might feel the effects of the IDFA change are start-ups backed by venture capital money who have hired professionals with the skills to target users with sniper precision, Love said.

People who are targeting users across mobile, web, and the Facebook Audience Network with the IDFA are "not small businesses," with Love calling such companies "sophisticated, VC-backed startups."

App Tracking Transparency will threaten Facebook's view-through conversion tracking, a metric that lets ad companies figure out how many people saw an ad, didn't click it, but later made a purchase related to the ad. Retailers can record the info of the person who bought an item and then share it with Facebook, with Facebook able to determine whether that person's IDFA matches with a user who saw an ad for the product purchased.

CNBC says that the loss of this info could heavily impact Facebook because if advertisers can't accurately measure the effectiveness of Instagram and Facebook ads, they might shift more of their budget to other apps and services.

Facebook's Audience Network, which provides advertisements in non-Facebook apps, will also be impacted because it uses IDFA data to choose the best ads to show to users based on Facebook data. If users opt out of sharing the IDFA, Facebook's ad personalization efforts will be rendered useless outside of its own apps.

Facebook is planning to ask users for permission to access the IDFA, and is testing wording that suggests the tracking will provide a better ad experience. Facebook test prompts encourage customers to allow IDFA usage to "support businesses that rely on ads to reach customers."

Popular Stories

iPhone SE 4 Thumb 1

iPhone SE 4 With Apple's Own 5G Modem 'Confirmed' to Launch in March

Tuesday November 19, 2024 12:12 pm PST by
Barclays analyst Tom O'Malley and his colleagues recently traveled to Asia to meet with various electronics manufacturers and suppliers. In a research note this week, outlining key takeaways from the trip, the analysts said they have "confirmed" that a fourth-generation iPhone SE with an Apple-designed 5G modem is slated to launch towards the end of the first quarter next year. In line with previo...
airtag purple

AirTag 2 Rumored to Launch Next Year With These New Features

Sunday November 17, 2024 5:18 am PST by
Apple released the AirTag in April 2021, so it is now three over and a half years old. While the AirTag has not received any hardware updates since then, a new version of the item tracking accessory is rumored to be in development. Below, we recap rumors about a second-generation AirTag. Timing Apple is aiming to release a new AirTag in mid-2025, according to Bloomberg's Mark Gurman....
Magic Mouse Next to Keyboard

No, Apple CEO Tim Cook Didn't Say He Prefers Logitech's MX Master 3 Over the Magic Mouse

Sunday November 17, 2024 3:03 pm PST by
While the Logitech MX Master 3 is a terrific mouse for the Mac, reports claiming that Apple CEO Tim Cook prefers that mouse over the Magic Mouse are false. The Wall Street Journal last month published an interview with Cook, in which he said he uses every Apple product every day. Soon after, The Verge's Wes Davis attempted to replicate using every Apple product in a single day. During that...
Generic iOS 18 Feature Real Mock

Apple Releases iOS 18.1.1 and iPadOS 18.1.1 With Security Fixes

Tuesday November 19, 2024 10:10 am PST by
Apple today released iOS 18.1.1 and iPadOS 18.1.1, minor updates to the iOS 18 and iPadOS 18 operating systems that debuted earlier in September. iOS 18.1.1 and iPadOS 18.1.1 come three weeks after the launch of iOS 18.1. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. Apple has also released iOS 17.7.2 for...
at t turbo indicator iphone 16 pro max v0 8hrh7w5f3w1e1

AT&T Turbo Indicator Showing Up in iPhone Status Bar for Subscribers

Wednesday November 20, 2024 3:42 am PST by
AT&T has begun displaying "Turbo" in the iPhone carrier label for customers subscribed to its premium network prioritization service, according to reports on Reddit. The new indicator seems to have started appearing after users updated to iOS 18.1.1, but that could be just coincidence. Image credit: Reddit user No_Highlight7476 The Turbo feature provides enhanced network performance through ...
iPhone 17 Slim Feature Single Camera 1 Redux

'iPhone 17 Air' Rumored to Surpass iPhone 6 as Thinnest iPhone Ever

Monday November 18, 2024 1:07 pm PST by
In a research note with Hong Kong-based investment bank Haitong today, obtained by MacRumors, Apple analyst Jeff Pu said he agrees with a recent rumor claiming that the so-called "iPhone 17 Air" will be around 6mm thick. "We agreed with the recent chatter of an 6mm thickness ultra-slim design of the iPhone 17 Slim model," he wrote. If that measurement proves to be accurate, there would be ...
bug security vulnerability issue fix larry

Make Sure to Update: iOS 18.1.1 and macOS Sequoia 15.1.1 Fix Actively Exploited Vulnerabilities

Tuesday November 19, 2024 10:52 am PST by
The iOS 18.1.1, iPadOS 18.1.1, and macOS Sequoia 15.1.1 updates that Apple released today address JavaScriptCore and WebKit vulnerabilities that Apple says have been actively exploited on some devices. With the JavaScriptCore vulnerability, processing maliciously crafted web content could lead to arbitrary code execution. The WebKit vulnerability had the same issue with maliciously crafted...

Top Rated Comments

Apple_Robert Avatar
48 months ago
I think the world would be a better place with less tracking and no Facebook.
Score: 123 Votes (Like | Disagree)
AttoA Avatar
48 months ago
Did anyone really believe that Facebook cared about small businesses?
Score: 54 Votes (Like | Disagree)
jz0309 Avatar
48 months ago
can't wait for the release of 14.5 ...
Score: 42 Votes (Like | Disagree)
Rshill Avatar
48 months ago
Facebook is going to lose so hard.
Score: 34 Votes (Like | Disagree)
mossback Avatar
48 months ago
Have never had a facebook account and never will.
Score: 34 Votes (Like | Disagree)
TheYayAreaLiving ?️ Avatar
48 months ago

I think the world would be a better place with less tracking and no Facebook.
[HEADING=1]How about with NO TRACKING![/HEADING]
Score: 31 Votes (Like | Disagree)