Apple to take the internet by storm with its new privacy changes causing Facebook and Google to face huge amount of loss

Apple is soon to update its privacy settings. It was announced last year by apple at the annual Worldwide Developers Conference (WWDC) in June that the IDFA (Identifier for Advertisers) would be now for the users to whether opt for it or not. Identifier for advertisers is a device identifier developed by Apple for its users. IDFA tracks data and identifies users for customized advertising without revealing their personal information. The new update will allow the users to give permission to other apps and websites over their personal data to be collected or not. This update of App Tracking Transparency in iOS 14 will disturb Facebook's advertising model. For Facebook to continue with this the users will first have to allow it. This means a greater means of privacy for their users.

Ads according to the users’ preference and their privacy can certainly co-exist. This privacy change is said to take the internet with storm it will cause a huge loss to Facebook and Google. It is said that Facebook will be facing a loss of $8 billion and Google of $17 billion. Facebook claims that 50% of its estimated personalization comes from 50% of the advertising. Apple postponed the release of this update on September but this change is soon to happen in 2021. Facebook posted few anti-apple advertisements. Apple said in reply that they are simply standing up for their users and each one of their consumers should have the choice whether to allow tracking of their data or not.

Photo: Volkan Furuncu / Anadolu Agency / Getty Images

Personalized ads are basically ads according to our preferences, interests and activity. It’s also the third-party apps and websites that will most affected as it will not allow small businesses to reach their estimated goals.

Eric Benjamin Seufert, a mobile marketing expert, says that the even in the best case scenario, there will only be a 2% impairment in the gross income. It’s likely that Google and Facebook will not be able to recover from this loss. Even at 10% impairment, Google will face a loss of $17 billion in its gross income and Facebook to have a loss of about $8 billion in the coming year. These two companies are some of the most successful ones out there, but we can’t deny the impact COVID-19 has had on every business. At this pace with the update causing such huge losses, the impact would be too much.

It is believed that Facebook and Google will somehow manage to cover their losses and come up with a long term solution

Read next: New Facebook Employee Memorandum from VP Indicates Greater Focus on Privacy
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