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Shares of Facebook Inc. fell on Wednesday after the social media company pointed out that Apple Inc.’s “privacy changes” continued to impact advertisers.
Advertisers feel a sting from an Apple AAPL,
software upgrade that gave users more control over how their online activity would be tracked by marketers. Those using a newer version of iOS that contains these controls have the option to opt out of ad tracking activity.
“Many of you have told us that the impact on your advertising investment has been greater than you expected,” Facebook’s FB,
Vice President of Product Marketing Graham Mudd said in a blog post on Wednesday. “The cost of achieving your business results may have increased and it has also become more difficult to measure your campaigns on our platform. “
Facebook shares were down more than 4% in Wednesday afternoon trading.
Apple’s update issues could affect Facebook’s finances – Mudd referred to the company’s earnings call in July, in which executives predicted that challenges arising from the new iOS controls would have an impact. greater impact in the third quarter compared to the second quarter. He also mentioned issues with the metrics Facebook shares with advertisers, which have hurt Facebook in the past.
Mudd noted in the article that Facebook may underreport key conversion metrics to advertisers, but he also acknowledged that the extent of Facebook’s estimated underreporting covers “a wide range for individual advertisers.” Facebook is trying to improve the way it helps advertisers measure their campaigns, including working to “increase the accuracy of conversion reports” and “accelerate” investments to address “known reporting gaps,” the post said. .
Opinion: Facebook investors, are you already starting to see a trend?
As Facebook navigates the changing advertising landscape, the company is also coming under fire following a Wall Street Journal investigation into its law enforcement practices. The investigation highlighted “the seemingly inconsistent way the company makes decisions,” according to a blog post from Facebook’s Supervisory Board, which plans to examine “to what extent Facebook has been fully available in its responses. “regarding cross-checks, or the way Facebook reviews content decisions made by certain high-level users.
The WSJ report was complemented by a Tuesday afternoon report from the New York Times on Facebook’s attempt to present positive news on Facebook to its users, and a Wednesday morning report from ProPublica detailing the abuse of the offer. Social network marketplace.
While Facebook shares fell on Wednesday, shares of other social media names held up better. Twitter Inc.’s TWTR share,
was up 1.9% during the session and SNAP from Snap Inc.,
the share rose 2.7%. Shares of the parent company of Google Alphabet Inc. GOOG,
GOOGL,
increased by 1.1%.
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