Recently, Facebook has been struggling with its market share as it predicted a $10 billion loss in revenue due to Apple’s App Tracking Transparency. However, the company might be starting to recover its ad revenue.
For those of you who don’t know, with iOS 14.5, Apple introduced a feature dubbed App Tracking Transparency (ATT), which allowed iPhone and iPad users to opt-out of tracking of their activity for targeted ads. Before this change, apps could track you across websites in order to offer you relevant ads, but Apple’s feature prevented that. And, as you can imagine, a vast majority of iOS users decided they didn’t want to be tracked.
Facebook was among the companies that vocally disagreed with ATT, accusing Apple of harming small businesses with the move. And, as we could see later, Facebook ended up suffering quite a lot from ATT, and its ad revenue dropped significantly.
As nothing is without consequence in this world, Facebook’s share value then plummeted because investors started selling their Facebook stock.
However, things seem to be starting to improve, at least according to some small businesses owners on Facebook or Instagram. Many small businesses are claiming that their ads are performing better than usual. The reason for this change is… surprise, surprise – unknown at the moment.
Earlier, Meta stated that it is working on adapting its advertisement systems to the new situation, so they can maximize the performance of ads. At the same time, many advertisers are reportedly still skeptical, but Meta seems to be working hard to maintain the improvement.