David Wehner, CFO on Facebook.
Harriet Taylor | CNBC
Facebook Chief Financial Officer David Wehner said Thursday that upcoming changes to Apple’s iOS 14 operating system could hurt the social network’s ability to target ads to users.
With the update to its mobile devices, Apple will ask users if they want to let app developers track their activity on other apps and websites. Apple has not yet said when iOS 14 will launch, but it is expected to launch this year.
“We’re still trying to figure out what these changes will look like and how they will impact us and the rest of the industry, but at the very least, this will make it harder for app developers and others to grow by using ads on Facebook and elsewhere, “Wehner said.
So far, advertisers have been able to use a device ID number called IDFA to better target the ads and estimate their effectiveness. In iOS 14, each app that wants to use these identifiers asks users to choose an opt-in to track when the app is first launched.
The change is expected to impact Facebook advertising in the third quarter but will have a stronger effect in the fourth quarter, Wehner said.
The company forecasts third-quarter revenue growth of about 10%, beating analysts ’expectations for 7.9% growth.
“Our view is that Facebook and targeted ads are a lifeline for small businesses, especially in Covid’s time, and we are concerned that the platform’s aggressive policies will be cut in that direction. the lifeline at a time when it is essential for small growth and small business recovery. “Wehner said.
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