Facebook blames Apple for $10 billion loss over ad warning

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Facebook stands to lose $10 billion this year due to a change Apple made to the iPhone. Last May, Apple added a feature to iPhone to block brands from tracking you across apps. Most users have opted out of being tracked, which has a major impact on Facebook’s results. LoadingSomething is being loaded.

Facebook’s parent company, Meta, stands to lose $10 billion this year due to a small but impactful change made by Apple last year.

In April 2021, Apple allowed iPhone users to choose which apps were allowed to track their behavior on other apps. As a result, the vast majority of users unsubscribed, which Meta CFO David Wehner says is hurting Facebook’s ad revenue.

“The overall impact of iOS as a headwind on our business in 2022 is in the order of $10 billion,” he said on the company’s fourth quarter earnings conference call. Wednesday evening.

Meta’s main source of income is its advertising business, which relies on the huge database of user information it has through the operation of some of the largest social platforms in the world: Facebook, Instagram and WhatsApp.

When Apple gave users the ability to block these apps from tracking them on other apps, it cut off a primary means of collecting advertising data. The change came as part of Apple’s iOS 14.5 update, which launched in April 2021, and required app publishers to include a pop-up requesting permission to track app sales behavior. ‘advertisement.

If users opt out, Apple blocks this app from receiving a variety of data used by advertisers.

According to early reports, more than 95% of iPhone users who downloaded the update opted out of ad tracking – hence Wehner’s prediction that Facebook ad revenue will take a $10 billion hit. over the coming year.

“We can’t be specific about that. It’s an estimate,” he said. “We are working hard to mitigate these impacts and continue to make ads relevant and effective for users.”

Facebook also reported its first-ever drop in user numbers, and parent company Meta’s stock took a heavy hit as a result: it fell 25% from $323 per share to nearly $245 on Thursday morning, thus erasing 230 billion dollars. in market value overnight.

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