Apple Vs Facebook: The War on Data
Facebook are on the warpath after Apple’s latest update, iOS14, has potentially set the precedent for a long-term trend in regard to data tracking and the use of ‘personal’ data. In early 2021, iOS users will have the opportunity to opt-out of in-app tracking after being served a privacy notice. This presents a problem for both Facebook and Apple; however, Apple’s stance is on the side of its users and not the developers of these apps, and most certainly not with Facebook.
Apple Misleading Its Users
It is no surprise that Facebook is making a huge deal of this, after all, this will finally give users the transparency they require to see how their data is being used for targeted advertising requirements and make a decision. It is fair to say that the majority of users will opt-out and, therefore, become free of Facebook’s algorithmic targeting. There are some ‘off-book’ tactics being used by Apple however with them indirectly using inflammatory language to loosely spotlight Facebook as the reaper of the user’s data.
The wording of this may lead the user to believe that Facebook is performing some kind of high-level espionage tactics in which they gather their data for some evil genius, annihilate the world type scenario. Of course, Apple is merely presenting their users with a choice to decide how their data is used and whether or not they would like to offer their data for the purposes of tailored and personalised advertising purposes.
There is a contradiction here though as the in-app tracking system, IDFA (IDentifier for Advertisers) was actually designed by Apple themselves and prevents such identifiable individuals being tracked. All the tracking system does is make a record that a particular device has visited a specific type of website in which it could later be served an advertisement relating to such topic to further tailor the consumer’s buying journey or interest. There is no facility or capability for Facebook to actually know who the user is.
Facebook Playing The Victim?
On the other side of things, it is fair to say that Facebook has not been completely transparent, and it would also be fair to say that this is the biggest understatement of the century! Facebook is claiming that they are out to protect small businesses when it is clear to see this is Facebook protecting their own interests as it will directly impede on their advertising streams.
Facebook recently ran digital and printed ads with the following message:
“Without personalised ads, Facebook data shows that the average small business advertiser stands to see a cut of over 60% in their sales for every dollar they spend,” Facebook’s print ad reads. “While limiting how personalised ads can be used does impact larger companies like us, these changes will be devastating to small businesses, adding to the many challenges they face right now.”
It’s Not The First Time
Facebook is not a victim here, however, this is not the first time Apple has flexed their muscles in an attempt to protect their own interests.
Apple is still in an ongoing battle with Epic Games after Epic was banned for distributing Fortnite on the App Store after they created their own in-app purchasing system in an attempt to absolve themselves of the 30 per cent fee that Apple currently charge app developers. There are lawsuits and counter-lawsuits in place with a resolution due to be presented in July of next year.
Who Will Win?
It is very unlikely that Facebook is going to win this particular battle as the chances of getting Apple to change its mind and reverse these actions are slim. Facebook’s reaction to this has been quite over the top and could be construed as protecting their right to other people’s data and therefore likely Apple will come out of the other end of this victorious.
There is the likelihood that Apple will lose out from this too though. So many apps are funded by the way advertisement and this, in turn, has been a large contributor to the success of Apple’s hardware. The people that will lose out in the immediate term will be the developers as they will earn significantly less money from their products. As a result, the viability of ‘free’ will be no more and force the developer to charge for what was once free.
As mentioned before, Apple is already embroiled in a legal battle with Epic Games and this will draw further attention to what they are doing, especially from the regulators. The EU commission has already drafted up new laws that will see a more level playing field come in to play. The Digital Markets Act (DMA) and the Digital Services Act (DSA) have been drafted to create a safer digital environment but also to ‘establish a level playing field to foster innovation, growth, and competitiveness, both in the European Single Market and globally’.
The Bigger Picture.
When looking at the possible effects of this move, it is clear that this will have a negative impact on advertisers and businesses, however, all is not lost, and the damage may be minimal. It is too early to tell but some would predict this is the beginning of something larger.
iOS accounts for only 28.19 per cent of the mobile operating system market share and with consumer use moving increasingly more toward mobile, Android still dominates with 71.18 per cent of the market presenting ongoing opportunities for advertisers to work and continue to help SME businesses to grow revenue and users, digitally.
