If those figures are even near the ballpark, this would surely represent a significant blow to FB. If widely circulated, this could be wielded to some effect in a campaign by FB detractors/rivals.
If those figures are even near the ballpark, this would surely represent a significant blow to FB. If widely circulated, this could be wielded to some effect in a campaign by FB detractors/rivals.
But who are the FB ads rivals that aren't affected in a similar manner by this change? Since the tracking permission isn't specific to FB, wouldn't other players with a similar business model also be negatively impacted?
Perhaps I am unduly influenced by the sorts of ads that I like, which tend to be posters, billboards or, just occasionally, TV/cinema/online pre-rolls. My favourite example would be the success of a Levi's ad from the '80s, see [1]: ‘It was a piece of magic’: How Levi’s ‘Laundrette’ ad led to an 800% sales boost
Yes, I realise that no small company can afford such advertising as that, but in a previous life, when I spent about a year in advertising sales for a local newspaper, I was wined and dined about a dozen times by local firms who'd let me come up with ad copy for them, and sometimes a campaign, who (rightly or wrongly) attributed a sales boost to my efforts.
Anyhow, you make a good point nonetheless.
[1] https://www.marketingweek.com/levis-laundrette-sales-boost/
> Yes, I realise that no small company can afford such advertising as that, but in a previous life, when I spent about a year in advertising sales for a local newspaper, I was wined and dined about a dozen times by local firms who'd let me come up with ad copy for them, and sometimes a campaign, who (rightly or wrongly) attributed a sales boost to my efforts.
I mean, the fact that this isn't really a thing anymore is almost certainly part of what kills local media nowadays, and by a kind of vicious cycle also helps kill local businesses. It used to be that small, local businesses weren't competing on the same playing field as large (inter)national businesses. They'd get local eyes on local ads in local venues. That would keep local media alive, and the ads would keep local businesses competitive.
Now they fight with national brands for ad space on national platforms where they're outspent for more narrowly targeted ads than were ever possible in the old days. Local media dies to national media, local businesses die to national businesses, meanwhile the national media gets bigger and richer every day.
Google. Apple's privacy changes restrict tracking from within mobile apps like Facebook and Instagram. Google is primarily browser-based and remains largely unaffected.
Can’t wait to see more paid placement in content, getting around my paid subscriptions, ad blockers, and “do not track” requests.
It looks like the 7% and 13.6% figures the article quotes are the initial revenue decreases for a single quarter, which the model assumes would recover thereafter. In general, the model is based on some very, um, stylized assumptions. I'm really skeptical that a 12.5% increase in the number of users who block tracking (from 80% to 90%) would result in a 60% increase in the impact of that blocking on revenue.
That said, I don't think the numbers are drastically out of line. Apparently >60% of Facebook's revenue is from iOS, so it wouldn't take that large of a decrease in efficiency for the revenue hit to end up in the 10% ballpark. The main question to me is the extent to which the loss is borne by Facebook or by advertisers. It's possible that advertisers are effectively price-takers and will keep paying basically the same amount despite a decrease in efficiency.