Facebook says it underestimates ad performance after iPhone privacy update

Texas News Today

Facebook told advertisers in a blog post Wednesday that it reduced ad performance on the iPhone, citing Apple’s privacy changes to its iOS operating system.

Facebook estimated that it reduced Apple’s web conversions on iOS by about 15% in the third quarter, pointing out that there is a “wide range” for different advertisers.

“We believe that actual conversions, such as sales and app installs, are higher than those reported by many advertisers,” wrote Graham Mudd, vice president of product marketing at Facebook, in a blog post. ..

Facebook’s stock fell more than 2% on Wednesday morning.

Facebook CFO David Weiner warned of the potential impact of the iOS change on the company’s July earnings announcement and said he expects the change to be more impactful in the third quarter. With Apple’s update, iPhone and iPad users had to opt in for tracking the first time they launched the app. Special tracking allows Facebook and other apps to show more personalized ads to users.

“We are optimistic about our multi-year efforts to develop new privacy-enhancing technologies that can demonstrate and measure the effectiveness of personalized ads while reducing the amount of personal information we process.” Mad wrote in a blog post on Wednesday.

In the meantime, Facebook has recommended some actions advertisers can take to better understand the performance of their ads. This includes waiting longer to analyze the data for delays and considering the use of additional measuring instruments.

Facebook said it is already working on improving ad performance measurement, including accelerating investments to report lag ahead of the holiday season.

Subscribe to CNBC on YouTube.

WATCH: Facebook fights Apple over user privacy feature in iOS update

Facebook says it underestimates ad performance after iPhone privacy update

Source link Facebook says it reduces ad performance after iPhone privacy update


Please enter your comment!
Please enter your name here