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.”

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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

Dr Kin Kariisa

Group CEO - Next Media

Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

  • Other current and previous roles played by Dr Kin Kariisa:
  • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
  • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
  • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
  • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
  • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.