iOS 14.5 vs Facebook Ads: A Big Tech Fight

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Recently, Apple launched the iOS 14.5 update with a new ‘App Tracking Transparency’ feature which is famously said to squeeze out Facebook’s profit by blocking Facebook Ads that its users are more likely to click. Technically Facebook is more of an advertising company that earns profits by showing targeted ads to its users. If it is not able to do so, then this puts a dent on Facebook’s business model as the social media giant cannot make money without running ads. Or the more terrible thing could happen – Facebook may start charging Apple users with a fee for its services. 

The new iOS 14.5 ATT feature helps to keep Facebook platforms “free of charge” as it cannot collect and track information from users anymore. Facebook collects data such as your location, age, spending habits, your browsing history, and so on and shows you ads based on the information collected from you. This way it is obvious that you are more likely to click on the ads, buy products, benefiting both Facebook and the sellers in its marketplace. Apple says: “This has been happening without your knowledge or permission. Your information is for sale. You have become the product.”

But let us be clear, the ATT feature does not completely make Facebook free of ads. Instead, the frequency of ads shown will reduce as they become less relevant with people not clicking them as often. Even though Apple has taken this step for its users,  Facebook will still be earning profit anyway from its larger share of Android users. 

iOS 14.5 vs Facebook Ads

App Tracking Transparency feature is a stunning feature as it provides an option for Apple users whether or not to allow apps to track their activity. The iOS 14.5 update asks you a simple question” Allow apps to track you, or not.” Whatever you choose is completely in your hands. And if at some point in time you change your mind and feel that you are missing out on important ads, you can always switch back.

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Author

Pooja Shrestha

Pooja is the Business Analyst at InfoTechs Nepal. A Computer Engineering graduate, she is an amazing content creator who gives life to our book of ideas. She adds the creative punch to our social media posts, videos, and blogs. She is also a fabulous artist by passion.