Roughly 75% of iPhone and iPad users now have iOS 14.5 or later with App Tracking transparency. And only 25% of them chose “Allow” when prompted. This disrupts the information chain which feeds the software.
Advertisers are concerned that the data they rely on is no longer available. The missing tracking features allow the platforms to see the volume of sales their clients are making.
Now it’s difficult to know which ads work. Losing the data also impacts Facebook’s ability to feature business products to potential customers from their past interests. And it is not easy to “re-target” people with ads that show users online items they haven’t yet purchased.
Facebook impacted when iPhone users say no tracking
Experts estimate that the iOS changes could reduce Facebook’s revenue by up to 13% if just 10% of users grant Facebook tracking permission. The full impact will be seen at the end of July when Facebook reports second-quarter earnings.
Advertisers seem to be taking a “wait and see” attitude. But some media buyers are noticing smaller clients are already struggling. Some don’t make enough sales to effectively leverage Facebook’s “lookalike” targeting features.