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Facebook told advertisers in a blog post on Wednesday that it underestimates advertising performance on iPhones, citing privacy changes Apple made to its iOS operating system.
Facebook estimated that it underestimated Apple’s iOS web conversions by about 15% in the third quarter, noting that there is a “wide range” for different advertisers.
“We believe real-world conversions, such as sales and app installs, are higher than reported for many advertisers,” wrote Graham Mudd, vice president of product marketing on Facebook, in a blog post.
Facebook shares fell more than 2% on Wednesday morning.
Facebook CFO David Wehner warned of the potential impact of iOS changes on the company’s earnings call in July, saying he expected to see a bigger impact from the changes. in the third trimester. Apple’s update made iPhone and iPad users choose to be tracked when launching an app for the first time. Specialized tracking helps Facebook and other apps deliver more personalized ads to users.
“We are optimistic about our multi-year efforts to develop new privacy-enhancing technologies that minimize the amount of personal information we process, while allowing us to serve personalized ads and measure their effectiveness,” Mudd wrote in the wednesday blog.
In the meantime, Facebook has recommended several actions advertisers could take to better understand how their ads are performing. These include waiting longer to analyze data to account for delays and considering using additional measurement tools.
Facebook said it was already working on improving ad performance measurement, including stepping up investments in gap reporting ahead of the holiday season.
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WATCH: Facebook battles Apple over user privacy features in iOS update
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