Facebook raises concerns that iOS 14 could hurt its ad business

iOS 14 introduces a range of features to let users control which data each app can access, including clipboard notifications and also an option to disable tracking between apps. These features are already causing problems for some developers, and now Facebook in particular is concerned about its ad business ahead of these changes.

Facebook Chief Financial Officer David Wehner told CNBC today that the company fears that iOS 14 will have a negative impact on how Facebook operates its advertisements. As the company’s revenue comes in large part from advertisements, any attempt to hinder such practice will hurt Facebook’s business.

“We’re still trying to understand what these changes will look like and how they will impact us and the rest of the industry, but at the very least, it’s going to make it harder for app developers and others to grow using ads on Facebook and elsewhere,” Wehner said. 

Wehner refers to a new option included with iOS 14 that allows users to disable tracking between apps. Until now, advertisers coulduse a device ID number called the IDFA to better target ads and estimate their effectiveness. In iOS 14, each app that wants to use these identifiers will ask users to opt-in to tracking when the app is first launched.

The change is expected to start impacting Facebook’s advertising in the third quarter but it will have a more pronounced effect in the fourth quarter, Wehner said. 

Here’s how Apple describes this feature:

“Apple requires app developers to ask for permission before they track you or your device across apps or websites they don’t own in order to target advertising to you, measure your actions due to advertising, or to share your information with data brokers.“

David Wehner argues that Facebook’s advertising platform is critical for small businesses as anyone can easily promote their products and services to millions of people. The company forecasts revenue growth of 10% for the third quarter, but now Facebook expects a decline in the fourth quarter once iOS 14 becomes available to the public this fall.

However, It’s not clear how Apple will verify if these apps are collecting personal data through other apps and websites.If you’re already running iOS 14 beta, you can find the new tracking option by accessing the Privacy menu in the Settings app.