It is well known that Apple has come up with a new update “iOS 14” for their iPhone. With this update, they are asking their users for permission to use their data by other apps and service providers. In case of denial of permission by the user, the apps won’t be able to track the data. In a statement from Apple, they said “Users should know when their data is being collected and shared across other apps and websites and they should have the choice to allow that or not”.
It is expected that most users will refuse their data being used by the other apps, given a choice. As a result of this update of Apple, the most affected service provider would be Facebook which tracks and uses the data of its users to a large extent.
How does it affect small businesses and Facebook Ads?
Facebook uses its user data to understand their behavior in order to show relevant ads to the relevant people. Facebook ads are one of the major revenue sources for Facebook and this new software update of Apple might affect their revenue.
As it can’t track the users behavior, it can’t show the relevant ads to the potential users who actually are looking for it. This will have a negative impact on targeting as Facebook won’t be able to track what people are doing online.
Sales for small businesses may decrease up to 60% for every dollar they spend on Facebook Ads without targeting.
For businesses that run Facebook ads, the lead quality from Facebook will be reduced. It is difficult for businesses to track the customers and to get the accurate data.
Without tracking of data, it is difficult for Facebook to categorize a person as a user. It is estimated that over 1 Billion iPhone users are currently present and that large number is a definite bother for Facebook.
Facebook’s counter action:
Though there is a continuous rivalry between Facebook and Apple, with the announcement of new software, it has become more intense now. Facebook also came up with the counteraction to Apple.
Facebook is trying to convince Apple users that the new software update will affect small businesses. They are coming up with the campaign/statement ‘’standing up for small business’’
Apart from this, Facebook is also promoting banners on top of its iOS app that warns users about the upcoming changes that can affect the way businesses run advertisements and engage with users/customers.
Due to these unexpected changes in targeting, businesses have to come up with new approaches in advertising. There is a definite need to explore alternate sources or platforms like Google Ads, Targeted Social Media Marketing, spread across platforms etc to promote their business to the right audience.
Most of the SMEs do advertising on their own with their internal team. But, with such updates in software, the landscape of advertising online might get disturbed.
However, there are other ways to target the right customer and grow your business online.
During such scenarios, experienced Digital Marketing Agencies like Inmantech DGi come to the rescue. With the experience of keeping update with frequently changing algorithms and implementing different digital strategies for various businesses, Inmantech offers just what your business needs.
Contact us for more information on how to grow your business online.