Facebook Users Said No to Tracking. Now Advertisers are Panicking

People give iOS apps permission to track their behavior just 25% of the time

Bloomberg
Bloomberg

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Photo: Gabby Jones/Bloomberg

By Kurt Wagner

When users get asked on iPhone devices if they’d like to be tracked, the vast majority say no. That’s worrying Facebook Inc.’s advertisers, who are losing access to some of their most valuable targeting data and have already seen a decrease in effectiveness of their ads.

The new prompt from Apple Inc., which arrived in an iOS software update to iPhones in early June, explicitly asks users of each app whether they are willing to be tracked across their internet activity. Most are saying no, according to Branch, which analyzes mobile app growth. People are giving apps permission to track their behavior just 25% of the time, Branch found, severing a data pipeline that has powered the targeted advertising industry for years.

“It’s been pretty devastating for I would say the majority of advertisers,” said Eric Seufert, a mobile analyst who writes the Mobile Dev Memo trade blog. “The big question is: Are we seeing just short-term volatility where we can expect a move back to the mean, or is this a new normal?”

Facebook advertisers, in particular, have noticed an impact in the last month. Media…

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