Buckle up, business owners. Apple announced in 2020 that it would introduce a feature in a future iOS update allowing users to permit apps to track their activity. iPhone and iPad users will see a popup explaining that an app wants to track them, and app developers can use this popup to explain how user data will be used. For example, Facebook says it uses this data to show people personalized ads. What does this mean and how can it affect your business?
The Brunt of the War – Personalized Ads
Facebook uses personalized ads to connect people who are most likely to be interested in what you have to offer in a safe manner. They help you reach people who’ve shown interest in your products online, find new audiences, and can help get new products and services off the ground. Since personalized ads are more relevant for those who see them, they create better experiences and can lead to better results for your business.
It sounds simple enough, but it’s how they get that information, how granular they can track you, and what Facebook does with your data that has people and businesses like Apple questioning and taking extra precautions.
How Personalized Ads Affect Small Businesses
According to Facebook, “Apple’s policy will make it much harder for small businesses to reach their target audience, which will limit their growth and their ability to compete with big companies.”
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Dan Levy, who runs Facebook’s ad business, said in a blog post that Apple’s policy change is “about profit, not privacy.” He claimed it would “force in-app purchases and subscription fees, from which Apple can take a cut of up to 30%.” Apple launched a new program earlier this year to reduce the commission to 15% for small businesses with proceeds of up to $1 million per year.
What Apple is Saying
“If a business is built on misleading users, on data exploitation, on choices that are not choices at all, it does not deserve our praise,” Apple CEO Tim Cook said during a speech last month in a thinly-veiled jab at Facebook. “It deserves reform.” This isn’t a shocker considering Facebook’s scandal with Cambridge Analytical and how they acquired the private data of tens of millions of users.
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Apple’s users are on board, casting Facebook as the villain to social media but with a deeper lens. Apple is essentially holding all the power of information at their fingertips, atop their giant mountain, conquering more and more of the tech world as possible. Because Facebook has its major faults, it’s hard to deem them a worthy victim in this as well. After all, they’re just looking out for themselves.
Who’s right? Who will come out victorious? What does this mean for other tech giants like Google? We aren’t too sure, but whatever’s in store, our team is always up-to-date conquering and discussing the newest trove of information.
Your Digital Marketers in McAllen
At Imagine It Studios, we’re always on top of what’s going on in the digital world and how your business can be affected. If you’re interested in learning more about how we can creatively impact your business online, contact us by clicking here!