our “big brothers” are feuding.
On Aug 26th, Facebook released a statement regarding Apple’s new operating system iOS 14. According to Facebook, the new operating system “places additional restrictions on user data that makes it harder to serve them with targeted ads.” This will severely impact an ad placement called Audience Networks.
The truth is, Apple has given lazy advertisers a huge gift. Their inefficient campaigns will now cost a little more, but be increasingly more efficient.
Audience Networks, since it’s launch, has been a problem for Facebook. Proposed as the company’s answer to programmatic display ad buying, astute advertisers (and smart media folks like the people at tag) have long steered clear – so much so that they’ve had to revise it, and add Inventory Filters for limiting exposure on Moderate and Sensitive content. (Let’s hope your media buyer checked this box…) One look at the placement tells you everything you need to know. Sure TikTok is part of their inventory, but so are Alt-Right news sites, Korean Singles sites and more solitaire apps than you knew existed. While the ad placement has long provided the ability to lower CPM, it’s also increased CPV, CPC, and every other ROI metric analysts use to show the effectiveness of their campaigns.
So what does this mean for brands advertising on Facebook? Unfortunately, costs are going to go up – and if Facebook doesn’t play their cards right, the platform may go down. Users have two expectations of Facebook, the first, they can see the content they came to see (their friend’s photos, family chats, etc.) and the second, they don’t have to see too many ads.
Unfortunately, supply has just dropped, and advertisers have less opportunities to reach their target market. This means more competition for traditional placements like news feeds, in-stream, and alternate platforms Instagram and Messenger. As long as Facebook doesn’t increase the frequency of ads, users will stay, but if they sacrifice user experience for profit, we could witness an exodus.
If you’re unsure what this means for your campaigns feel free to reach out, and we can walk you through the expected results. If you’re one of our clients, you were insulated. We’ll reach out with new projections for your campaigns as soon as iOS 14 launches later this fall.
https://www.cnn.com/2020/08/26/tech/facebook-iphone-ios-14-advertising/index.html