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DIGITAL ADVERTISING

Facebook’s advertising revenue hit by Apple’s new privacy rules​

By our News Team | 2021

Earlier this year Apple started requiring apps to ask users whether they want to be tracked – and Facebook’s profit has suffered as a result.

Social media giant Facebook is blaming Apple’s new privacy rules for its slowing sales growth and believes there is uncertainty ahead for the company’s lucrative advertising sales operation.

Facebook made the announcement during its latest quarterly financial update on Monday (25 October), the New York-based Wall Street Journal is reporting.

“Facebook’s ad sales, its primary revenue source, saw slower growth in the first full quarter since Apple in April started requiring apps to ask users whether they want to be tracked,” the Journal said.

“That change has made it harder for advertisers to target their ads at audiences and get information regarding how well their ads performed.”

Digital advertising

Image by Gerd Altmann from Pixabay

The social media company has been warning for some time that Apple’s privacy changes to its iOS operating system would hamper its ad-targeting capabilities as more people update their iPhones and iPads.

Chief operating officer, Sheryl Sandberg, told analysts that sales would have grown in the third quarter had it not been for the Apple privacy changes. “We and our advertisers will continue to feel the effect of these changes in future quarters,” she said.

Sandberg added that online commerce was not growing at the pace it did during the height of the pandemic and that the global supply-chain crunch was also weighing on ad sales. Renewed Covid-19 outbreaks in Southeast Asia, she said, slowed economic activity still further.

Facebook’s third-quarter profit rose 17% to $9.19-billion. The company said it had 3.58-billion monthly users across Facebook, Instagram and its other services, a figure which has increased by 12% from a year earlier.

Sources: Facebook, Wall Street Journal, Ad Age

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