What is IDFA? Can Apple Disrupt the Advertising Industry? And Why is Facebook Afraid of the IDFA changes?

What is IDFA? Can Apple Disrupt the Advertising Industry? And Why is Facebook Afraid of the IDFA changes?

What is IDFA? Can Apple Disrupt the Advertising Industry? And Why is Facebook Afraid of the IDFA changes?

Why does Mark Zuckerberg want to inflict pain on Apple? 

Apple’s making some significant changes to IDFA, the utility that app developers use to get information about who someone is. Understandably, some consumers take issue with being tracked. But IDFA is essential to the way that a lot of advertising works.

Advertisers aren’t going to be able to target audiences as effectively once Apple initiates its changes; they’ll have to ask customers to provide access. 

So, Apple could really disrupt Facebook, because Facebook isn’t really in the social media industry; it’s in the advertising industry. Facebook makes most of its money through ads and the less effective ads are, the less money it will make. But Facebook is not the only company that will be disrupted it will ripple through the whole advertising industry. We reached out to Ankit Minocha at Shop2App to get his thoughts on if he thinks IDFA trend will disrupt the advertising industry, and he stated “It certainly will, what this is doing is putting all players, small or big, on a level field. Because there’s a big unanswered question of what percentage of people are going to opt-out of that data privacy pop-ups, it’s hard to say how extensive this change is going to be.”

Advertisers will have until mid-Spring 2021 to adjust to these changes. With location sharing being more opt-in, the effectiveness of ads can go down considerably. Even if ads are able to target audiences they may not be able to track their success.

Google in response to the pressure from Apple has announced similar changes, as reported by Wired that they will be phasing out third-party cookies from its Chrome browser by 2022. These IDFA and Cookie changes are both beneficial for the end user’s privacy, bit it radically changes the way advertisers and apps have historically worked.

Ultimately, the fact is that users are becoming more concerned about security and more wary about sharing data. Users are increasingly eschewing services like Google in favor of Duck Duck Go, to improve their own security and anonymity online. This represents significant disruption in how advertisers will function.

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1 Comment

  • Clelia Mahe July 29, 2021 at 2:25 AM

    keep us up to date like this. Thanks for sharing.

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