Technology

Apple is creating a new ‘Y2K incident’ that wobbles Facebook


Apple’s new security changes could shake the e-advertising industry. Facebook and advertisers both have to adapt.

Since March, iOS 14.4 requires app developers to require permission from new users to track, read personal information and permissions on the device.

“This is the equivalent of Y2K in our industry,” said Doug Rozen, CEO of Dentsu Media Americas.

Great influence on advertisers

Advertisers worry that Apple will limit their framework and authority on Facebook. Measured technology director, Madan Bharadwaj said that this is a big damage to advertising techniques to research customer behavior. This big change will affect both a mobile ecosystem (iOS), and also those who use Facebook as the primary advertising method.

Facebook announced it stopped using advertising efficiency studies last week. This study will calculate the profitability and measure the user’s shopping bias from the ad campaign.

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Facebook ads are slowly being restricted. Photo: Internet.

Follow Business Insider, many users expect ads to go back to older methods like geolocation customer behavior research. Many anonymous individuals believe that Facebook is running a test of the above method.

“It’s not the most advanced approach, but we can still improve it more under current conditions,” says Bharadwaj.

For many others, it’s a good idea to have less detailed behavioral measurements. The changes to IDFA will force advertisers to access more data sources, not just Facebook, said Andrew Richardson, deputy director of analysis and marketing science Tinuiti.

This change will also affect Facebook’s own business. The absence of IDFA would have wiped out 7% of total profits, or 5 billion USD of the company in the second quarter of 2021, said consultant Eric Seufert. In addition, Facebook cherished a campaign to help small businesses personalize their ads.

Apple will change the advertising industry

Some brands are getting more creative in their first-party data collection. This week, Google said it will not track users while browsing, as a move to remove third-party cookies for advertising.

The number of Apple users who declined to be tracked is unknown. The consequences can be particularly dire for many advertisers who are too reliant on Facebook’s algorithm. Dating app Bumble thinks that Apple’s change will hamper its business. Facebook revenue itself depends largely on advertising.

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Apple’s change will affect companies that use user data to advertise the most, like Facebook. Photo: MacRumours.

“Brands that build Facebook-based marketing algorithms are in a hurry,” says Bharadwaj. “Companies can’t throw half a million dollars on advertising campaigns to get inadequate data.”

If users disagree, says Simon Poulton, Wpromote’s vice president of intelligent digital technology, tracking ad data through social media platforms, including Facebook. . This may affect growth in small businesses somewhat.

“When working with millions of dollars, a small influence will bring big losses, but from there you will also be more consistent in finding alternatives,” Simon said. “However, the smaller companies will be budget constrained, and may not see the benefits of the long term investment.”

What is Y2K incident?

The 2000 computer crash (also known as the Y2K crash, the millennium error, or simply Y2K) was a computer problem that took place at the beginning of the year 2000. The causes were computers. In the old system, old electronic clock circuits could not tell the difference between the years 2000 and 1900, because they were programmed with the last 2 digits of the year to save storage capacity when the price even manufacturing computer hardware in the early stages is still expensive.

Because of this incident, many organizations, companies, and governments in many countries had to urgently patch and change their systems in 1999, if they did not want things to go up and down when they passed the year. 2000.

Follow Zing / Business Insider

Why does Apple win big in China?

Apple recorded record sales in the second quarter of 2020 in China. However, many people question whether the iPhone maker’s success here will last.

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