Facebook on Apple Iphone, Photo by Solen Feyissa on Unsplash
I. Introduction
Explanation of App Tracking Transparency (ATT) feature of iOS, iPadOS, and tvOS 14.5
The world of tech is always bringing out new features to make our lives easier and more convenient. For example, App Tracking Transparency (ATT) was added in the iOS 14.5 update. Basically, if an app wants to track your activity across other companies' apps and websites, it has to ask for your permission first. So when you open up an app on your iPhone, iPad, or Apple TV, you might get a message asking if you want to let the app track your activity across other apps and websites. You can either say yes or no. This feature is all about giving users control and transparency over their data and privacy.
Brief overview of how Facebook tracks users
Alright, so let's chat about how Facebook follows its users. As one of the biggest social media sites out there, Facebook uses a bunch of different strategies to monitor what its users are up to. This helps them to give users more tailored content and ads based on what they're into and their online habits.
So, how does Facebook track users? Well, the exact methods used by Facebook depend on the user's platform and what they want to achieve. But, Facebook usually uses cookies as one of their most popular techniques.
Cookies are small files or sections of code that are stored on your computer by websites you visit. Facebook takes advantage of cookies to keep tabs on what you do while you're on their website, plus they save your login details so you don't have to keep entering them every time you visit. All this helps make your experience smoother.
Facebook also uses pixels, which are small images that can be embedded into web pages and emails. When you go to a website that has a Facebook pixel, the pixel sends information about what you do on the website back to Facebook. This helps Facebook create ads and content that are more tailored to your preferences.
Apart from these strategies, Facebook also follows people through Instagram and WhatsApp, which are both owned by them. By using these apps, Facebook can get even more info about us, like where we are, what we like, and our preferences.
Basically, Facebook has ways of personalizing your experience, but Apple just made it harder for them to make money on ads. We'll get into that a bit more later.
How Facebook Tracks it's Users, Photo by Glen Carrie on Unsplash
II. How Facebook tracks users
Explanation of cookies and pixels used by Facebook
As mentioned earlier, Facebook uses cookies and pixels to track user activity. Cookies are small files or sections of code that are stored on your computer by websites you visit. Facebook keeps tabs on what you do on its site by using cookies, and also stores your login details.
When you go to a website with a Facebook pixel, it sends data back to the social media platform about what you do there. This helps Facebook give you ads and content that are more tailored to your interests.
Say you're checking out some new shoes online. The website you're on has a Facebook pixel on it, which sends back information to Facebook about what you're doing on the site - like that you're looking at shoes to buy.
Later, when you log into Facebook, you may see ads for shoes in your News Feed or on the side of your screen. These ads are targeted to you based on your interests and activity on the internet, thanks to Facebook's tracking methods.
Instagram, Whatsapp and other Social Media App, Photo by Christian Wiediger on Unsplash
How Instagram and WhatsApp are used for tracking
In addition to cookies and pixels, Facebook also uses Instagram and WhatsApp for tracking. Both of these tools are controlled by Facebook, and they give even more information about what people like and what they're into.
On Instagram, you can post pictures and videos, follow other people and businesses, and like stuff. When you use the app, Facebook can find out what kind of content you're into, who you're keeping up with and even where you're at.
On the flip side, WhatsApp is a messaging app that lets you send texts, voice messages, and make calls and video calls. Plus, Facebook can get data from you when you use it - like who you're chatting with, the kind of messages you're sending, and even your location.
By collecting this info, Facebook can build a fuller picture of each person, meaning they can give you more tailored content and ads. However, with the introduction of Apple's ATT feature, Facebook's tracking methods have been hindered, which has had a negative impact on their advertising revenue. Let's dig into this a bit deeper in the following section.
III. Impact of Apple's ATT on Facebook
Explanation of how ATT affects Facebook's advertising revenue
Apple's new App Tracking Transparency feature, part of the iOS 14.5 update, has completely changed the game for Facebook's ad income. Previously, Facebook was able to track user activity across other companies' apps and websites without explicit user consent. This allowed them to target users with personalized content and advertisements based on their interests and preferences.
However, with the introduction of ATT, apps are now required to ask for permission before tracking user data across other companies' apps and websites. Basically, Facebook can't keep tabs on people without their permission, and a lot of people decided not to be tracked. So now, Facebook isn't as good at giving users ads and content that are tailored to their interests. This has caused a drop in their advertising money, since advertisers don't want to pay for ads if they can't be sure it'll reach the right people.
Facebook's response to the new privacy change
Facebook has been vocal about its opposition to Apple's new privacy change. In December 2020, Facebook took out full-page newspaper ads claiming that the change would be detrimental to small businesses that rely on targeted advertising. The ads read, "We're standing up to Apple for small businesses everywhere."
Facebook claims that the revised privacy settings may be damaging to small businesses which use targeted advertising to make money. Without the ability to track user data across other companies' apps and websites, Facebook argues that small businesses will struggle to reach their desired audience, leading to a decline in revenue and potentially causing some businesses to close.
Report by Lotame on the expected financial loss for Facebook
According to a report by Lotame, Facebook is expected to experience a significant financial loss due to the introduction of Apple's ATT feature. The report estimates that Facebook will endure the biggest hit of almost $13 billion due to the anti-tracking measures.
Basically, Facebook earns most of its money from ads, and those ads are based on tracking user data from other apps and sites. If they can't do that, they won't be able to give people the same targeted ads, which means their ad revenue will go down.
Overall, the introduction of Apple's ATT feature has had a major impact on Facebook's advertising revenue. Facebook has made it clear they don't agree with the new privacy change, but it's still unclear how they'll adjust and develop in the face of this difficulty.
IV. Apple's restriction on Facebook's tracking features
While it is true that Apple has introduced the App Tracking Transparency (ATT) feature, it has not directly restricted Facebook's tracking capabilities. The feature simply requires apps to obtain explicit user consent before tracking their data for personalized advertising purposes. Basically, Facebook still has the ability to monitor users, but only if they give the go-ahead.
So how does ATT work? When you download an app, it'll ask if it can follow you on other apps and websites. If you say yes, it can use your data to show you ads. If you say no, it won't be able to track you.
Facebook isn't too happy about the new feature they just rolled out. They said in a blog post that it'll be tougher for small businesses to get their message out there and find success through personalized ads.
Yeah, it's true the new feature might make it harder for small businesses to use personalised ads, but it's important to remember it was put in place to give users control over their data, so they can choose if they want to be tracked or not. Facebook needs to come up with ways of advertising to users without invading their privacy.
According to a report by Lotame, Facebook is expected to endure the biggest hit of almost $13 billion due to the anti-tracking measures. This is a big bummer for Facebook, but it's important to remember that Apple isn't to blame here. People are just choosing to keep their privacy and not let Facebook track them.
In conclusion, even if Apple's new feature would hurt Facebook's ad sales, it is an essential step in preserving user privacy. It will be up to Facebook to adjust to this new environment and discover new ways to promote to users without violating their privacy.
V. Conclusion
To wrap it up, Apple's App Tracking Transparency feature has caused quite a buzz in the tech world, particularly for companies like Facebook which count on targeted advertising. Facebook usually follows its users through cookies and pixels, but the introduction of ATT has made it much more difficult, as users now have to give their clear agreement. It's been estimated that this change will result in Facebook losing nearly $13 billion, according to a report by Lotame. Facebook has responded by protesting against Apple's new privacy change, arguing that small businesses are going to be the most affected and may need to consider other sources of income. Although Apple has not prevented Facebook from tracking its users, the feature has given them more control and transparency over their data. Future events will show how social media companies, such as Facebook, will handle these adjustments. In the meantime, it's important for users to be aware of their privacy settings and think twice about the apps that have access to their data. As technology and privacy issues keep changing, it's essential to remain knowledgeable and careful in the digital world. All in all, the introduction of App Tracking Transparency may be the first step towards a more privacy-oriented society, but it has also exposed the complex relationship between social media companies, user data, and targeted advertising.