Facebook’s parent co., Meta, reported a massive drop of 26% in market capitalization last week; that comes to a whopping $250B. That was the biggest ever fall for one of the greatest money machines the world has ever seen. And Facebook is largely pointing the finger at Apple for the slide.
Last week, Meta gave a stunning earnings forecast to Wall Street. It reacted adversely and wiped out $250B of the company’s valuation in a single day.
Facebook says that changes made by Apple in the way that advertisements work within the iOS apps will make it difficult for app makers and advertisers to track the internet behavior of iPhone users.
The development goes back to June 2020. That was when Apple went for adjustments to its iOS 14 update, giving iPhone users the option of opting out of any app that tracks their usage on the internet. This move builds on Apple’s core policy that privacy is a basic human right.
But internet advertising is built on the system of tracking users and their preferences. Facebook uses such information and applies it to commercials that may be applicable to your line of interest.
The more accurate the data, the easier it becomes for companies and advertisers to target the user with the most relevant products. FB will now find it tougher to advertise to iOS users, though it and other advertisers can expect a rise in revenue.
Advertisers on FB will find it more expensive to reach people using the iOS ecosystem.
Facebook Looks For Ways To Go Around The Apple Blockade
While it will be difficult to predict accurately the individual preference of Apple users, Facebook is out to catch up at this setback through a workaround, using its ‘aggregated event measurement.’ Facebook’s advertisers will gain access to data measures for a general audience, though getting it for individual users will be denied.
Apple remains motivated in giving its users a privacy-focused experience. it remains to be seen if Facebook can leverage its funds to find a way around.