Facebook share drops after losses due to Apple’s tracking opt-in

Apple’s tracking opt-in presses the conversion rate on Facebook ads, among other things. Now Facebook is correcting the numbers down and trying to reassure advertisers.

Because of Apple’s changes to the privacy settings, which came into effect with the update to iOS 14.5 in April, Facebook is less able to display personalized ads. This continues to have an impact on the conversion rate – more than expected, Facebook announced. The Facebook share then fell by a good four percent.

Because Apple mobile users can now prohibit apps from tracking their activities, there is less data available for personalized ads. Many advertisers have reported that the impact of Apple’s changes was stronger than expected, writes Facebook’s marketing manager Graham Mudd in a blog post.

At the same time, Mudd tries to reassure customers: The worrying numbers are due, among other things, to the fact that Facebook reported too little about the development of conversions, he admits.

Facebook reported the reactions of iOS users to ads by 15 percent too low. In addition, the conversions would vary greatly depending on the ad partner.

“We believe that actual conversions, such as sales and app installs, are higher than what was shown for many advertisers,” says Mudd. Facebook is working on improving the evaluations.

In the future, Facebook wants to be able to generate personalized ads with less personal data. It would take several years to develop the necessary technology, but one is optimistic, explains Mudd.