Facebook CEO Mark Zuckerberg on Thursday said he is confident the social media company “will be able to manage through” Apple’s upcoming privacy changes. With less tracking data available at its disposal, Facebook and all of its clients, including small businesses, will not be able to target ads as effectively as they once did. One particular threat is that advertisers will pour more money into Google’s search ad business, which Facebook cannot duplicate, and which targets users at the time of conversion. Meanwhile, Apple and Facebook are firmly in the crosshairs of growing regulatory fervour. Cook and Zuckerberg were both grilled by the US Congress last summer as part of an antitrust investigation.

These are somewhat dark times for Meta, and for the first time in a long time its future seems a bit unclear. No doubt IDFA and other potential moves by Apple and maybe Alphabet down the line could cause more challenges to Facebook and parent Meta’s advertising revenue streams. This means Meta will have to be bold in its strategy, and I do believe its commitment to the Metaverse certainly represented a high risk, high reward change.

The ideas that Zuck and the Meta team have put forward have been compared to movies like Ready Player One where people strap on a headset and are in a completely different universe. And in challenging times like these, we need your support now more than ever. This result is not surprising as Apple has made privacy a significant element of its iPhone and other product marketing. Meta’s revenue increased by 20 per cent in the three months ended in December last year, to $33.7 billion when compared to the same period a year ago.

Even, last year, after Apple introduced such changes, Snap Inc’s stock dropped 25 per cent on 21 October. This is “based on a review of internal Facebook documents, including research reports, online employee discussions and drafts of presentations to senior management”. Beyond the festive season too, Apple’s iOS changes are harbingers to irreparable harm to Facebook’s ad business. Advertisers who rely on Facebook to sustain their businesses, particularly the festive season ahead, aren’t amused at all. Sign Up NowGet this delivered to your inbox, and more info about our products and services. In terms of specific businesses, the IDFA change will particularly hurt its Audience Network.

“It’s on the order of $10 billion, so it’s a pretty significant headwind for our business,” CNBC reported. CFO Dave Wehner agrees, but he says the market could shrink in the new environment. Facebook says its Audience Network, which displays advertisements in third-party apps, will get hit hardest by the changes. It warned that developers using Facebook Audience Network could see revenue decline 50% after Apple announced the new feature. The Audience Network only accounts for a small percentage of Facebook’s ad business. Some of the last holdouts in the switch to digital were smaller businesses — and reports at the time showed that there wasn’t a lack of companies trying to swoop in on the opportunity to work with local mom-and-pops.

These apps will help bring some peace of mind with added safety and security. Microsoft’s Surface Pro 9 updates the Windows tablet with both Intel and ARM options, in a form that competes directly with Apple’s iPad Pro lineup. Apple added a few new AI-based selection tools to Photos in iOS 16 and Preview in macOS Ventura. They’ve spent the last few months inadvertently telling investors and ad buyers that their product’s effectiveness and quality will be greatly diminished.

Then Facebook’s CEO Mark Zuckerberg reported that his company would see a $10 billion revenue hit in 2022. In October 2021, Snapchat’s parent company Snap saw its stock price fall 25 per cent over fears regarding the impact of ATT. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. With over ten years in the technology industry, one of them being at Apple, Joe now covers the company for the website. In addition to covering breaking news, Joe also writes editorials and reviews for a range of products. He fell in love with Apple products when he got an iPod nano for Christmas almost twenty years ago.

Last week, Meta posted a mediocre slate of earnings that were accompanied by some grim guidance, following what were strong results from Alphabet led by its digital advertising business. The potential loss of $10 billion in ad sales revenue accounts for nearly 8% of Facebook’s yearly revenue — and the market reacted, with the stock price heres what readers us service nightmares dipping 26%. The most recent battle centres on Apple’s iOS 14 update, due to roll out in early spring, which will force apps to ask users to opt into third-party data tracking. Specifically, developers will have to ask for permission to use IDFA identifiers, which allow advertisers to track the behaviour of individual devices.