David Wehner, Facebook’s chief financial officer.
Harriet Taylor | CNBC
Facebook chief financial officer David Wehner said on Thursday that the upcoming changes to Apple’s iOS 14 operating system could jeopardize the social network’s ability to target ads.
After updating their mobile devices, Apple will ask consumers if they want to allow app developers to track their activity on other apps and websites. Apple has not said when iOS 14 will launch, but it is expected to be released this year.
“We’re still trying to figure out what these changes will look like and how they will affect us and the rest of the industry, but at least it will make it harder for app developers and others to grow with Facebook ads and elsewhere,” Wehner said.
So far, advertisers have been able to Use a device ID number called IDFA to better target your ads and evaluate their performance. On iOS 14 devices, each app that wants to use these identifiers will ask users to select tracking when the app is first launched.
The change is expected to affect Facebook advertising in the third quarter, but it will have a more pronounced impact in the fourth quarter, Wehner said.
The company forecasts that third-quarter revenue will grow by about 10%, while analysts ’expectations for 7.9% will increase.
“Our view is that Facebook and targeted advertising are a lifeline for small businesses, especially in Covid times, and we are concerned that aggressive platform strategies will diminish at a time when it is critical to the growth and recovery of small businesses. “Wehner said.
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