Facebook Blames Apple’s Ad Changes for Losses

Facebook officially complains about the negative effects of Apple’s updated advertising policies, and it seems that Apple is really worried now. It appears that the headwinds expected during the July earnings call became the reality. But how much does it matter?

The Full Picture

The current Apple-Facebook tiff seems to only get more complicated as the second accuses the first of implementing premediated measures to impact its ad revenues. Facebook thinks that Apple doesn’t improve the privacy policies with care about its users at the first hand. The company says that the major purpose is to gain more control and dominate advertising on iOS. 

At the same time, the social network admitted under-reporting conversion rates. That made advertisers calculate a presumably false 15% drop in Facebook advertising efficiency. Still, there are many rumors that the actual iOS web conversion figures have fallen even lower than 15%, which makes many companies think of Facebook ad efficiency decrease along with a significant potential cost rise. Hopefully, the so-called under-reported figures are not made up to persuade investors to keep their shares. 

Now both Facebook and thousands of advertisers are in the limbo of waiting for Apple to clarify how to deal with the supposedly intentional artificial challenge. For some reason, Apple is still silent and doesn’t provide the community with any instructions. It seems that they want Facebook to deal with it on its own as Apple doesn’t lose anything. 

A Deeper Impact?

If Apple stays indifferent and insists on “improving customer experience”, many advertisers, Facebook, and other social networks may face significant growth of ad expenses and potentially lower ad revenues. What’s Apple’s actual plan behind it all? What do you think? Share the news and let’s discuss this hot topic in the comments section below.