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Apple’s IDFA changes may adversely affect Facebook and Snapchat the most

A recent report by MKM Partners suggests that Facebook and Snapchat will face the major brunt if Apple’s IDFA changes come into effect.

Since December 2020, Facebook has been creating mayhem over Apple’s upcoming IDFA changes for iOS 14. Not only Facebook, but many other apps and sites are upset since Apple revealed its plans for bringing these changes.

IDFA stands for Identity for Advertisers. When a user uses apps and sites like Facebook, Amazon, etc. to name a few, these sites use third-party companies to detect this user’s personal information, device information, contacts, shopping history, payment information, and a lot more. Now, for these apps and sites it is necessary because, through this data that they collect via third parties, they get an idea about the likes, dislikes, and interests of a user. Then, they target them with personalized ads that suit their choices.

This kind of personalized ad tracking is beneficial for these apps and sites as it helps them generate revenue, and it is helpful for the advertisers and businesses too who use these platforms to showcase their ads to a wider audience.

Apple, on the other hand, believes that users should have control over what ads they want to see and which ads they would like to ignore. For that matter, Apple thinks that users should also have control over which apps and sites should track them, and which ones should be blocked.

To implement this strategy, Apple announced the IDFA changes in iOS 14 that will provide the user with explicit information about each app or site’s data collection practices and will exactly tell how their data will be linked and how much of the information all these sites will receive. If the user feels exposed and if they are against this practice, through Apple’s default IDFA changes, they can block these sites from tracking them.

Now, while this is going to be a relief for the consumers, of course, apps and sites are not happy with this step because if the users will choose to block their tracking, these sites will not be able to collect their data and use it for ad targeting. Facebook has been crying out that this move will inadvertently affect all those small and medium-sized businesses that use these platforms for advertisement.

And now, a recent study by MKM partners suggests that Facebook is not wrong to oppose this move by Apple. Because unfortunately, Facebook and Snapchat are going to be the most affected apps because they collect the most amount of data from the users.

Analysts from the Bank of America also think the same. It is not when these changes will come into effect, but whenever they do, they will surely cause at least a 3-5% of revenue drop for both these apps.


Photo: Justin Sullivan Getty Images

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