The Facebook Apple Battle – How Your Business Is Impacted by the Outcome of the Battle of the Titans

The ongoing Facebook/Apple battle has intensified but the only loser from this fight may unfortunately be you. As an online store owner or Etsy shop owner that relies on Facebook ads to generate sales, you now face a more difficult time to win over buyers. It’s not all doom and gloom however as there is more to the story than it seems.

What are Facebook and Apple Fighting Over?

Apple has often been at the forefront of developing privacy policies and systems that are intended to protect their users. Back in 2010, Steve Jobs himself said that users should have the opportunity to choose whether platforms and thirds parties could use personal information.

Fast forward 21 years and the debate has turned into an all-out fight. While Apple sees their changes and updates as essential components in retaining and protecting their clients, Facebook argues that small businesses and their specialized ads will be significantly harmed. In a statement, Facebook says that the change would, ‘limit your ability to effectively reach, understand and engage people on mobile devices and across the web’. If you are a small shop this statement sounds incredibly ominous, doesn’t it? All it does is leave you with an uneasy feeling that your business and personal life will be adversely affected.

While Facebook continues to champion themselves as a fighter for small businesses, sellers, and advertisers alike, how is Apple’s IOS 14.5 supposed to work for the everyday person?

How does Apple’s IOS 14.5 Update Work?

For several years, Apple users have gone about their business not really knowing that there is a dedicated number attached to their device. This number, otherwise known as ‘Identifier for Advertisers (IDFA)’ had one purpose – to link apps to one another to understand how that person uses platforms to deliver specialized and targeted ads.

It was a great feature for apps in general – not just Facebook. As time has gone on however, Apple has backtracked on this and is attempting to put more power in the hands of the user. So, in 2021, Apple’s IOS 14.5 update saw the introduction of a feature called ‘App Tracking Transparency’ or ATT for short.

Simply put, this now allows users to choose whether an app can track them and their data or not. Users will be prompted to choose between ‘Allow Tracking’ or ‘Ask App Not to Track’ the first time that they download or use a app.

Why is this Fight Important to Small Businesses?

Small businesses such as Esty sellers and Shopify sellers are right to be concerned about these changes. Many rely on the tracking technologies that help them identify and target an audience with specialized adverts to shop online. This helps businesses to persuade users to shop local at small shops based on their location or international based on their personal preferences.

What this tracking does for many businesses is save time, save money, increase the chance of completing a sale, and simultaneously increase the likelihood of retaining a client. Why would you want to lose out on all of this!

Facebook has been adamant that they will continue to challenge Apple on these updates yet there is not much information coming from small sellers who rely on Facebook and Instagram to sell products and services.

Will the IOS Update Actually Harm Small Businesses like Facebook says?

Although Facebook continues to push towards re-establishing some form of tracking technologies, the Harvard Business Review reveals that this campaign is misleading and ultimately hampers Facebook’s efforts of standing up for small business owners that rely on their platform and tracking policies. This is because Facebook cherry picked (to no one’s surprise) advertising statistics to augment the negative impact that Apple’s decision will have on Small Businesses. If they intend to fight for Small Businesses, ‘disinformation about advertising effectiveness isn’t the way to do it’.

On this issue, our opinion at Grammedit is that, the direct impact of Apple’s IOS update won’t be felt by sellers and advertisers just yet, but as with anything in business – it opens further opportunities that can be leveraged by smart and efficient business owners who understand every principle of online shopping. Small Business must be more alert to what end users’ sentiments s are on the issue. According to a recent unscientific survey conducted by Grammedit, 54% of respondents believe that Apple is right to police personalized ads while 40% believe neither Apple or Facebook are right on this issue. There is understandable fear among consumers about maintaining their privacy and reassuring them of the commitment to address their fears should become an essential component in small business marketing.

The Effect of the IOS Update on Sellers and Advertisers

So, with Apple users now afforded the opportunity to choose whether apps like Facebook can track them, how will it affect you as a seller or advertiser?

Loss of Sales and Income

Straight away, the perceived impact for many businesses that use targeted ads will be a loss of sales and income. The inability to directly target a prospective client or audience will see many sellers have a downturn in earnings.

Measurement Systems

Loss in sales is a major concern yet another crucial aspect that will be affected is the measurement systems used to target an audience. Facebook and other apps generally knew the location of a person that clicked on a specific ad so that they could then deliver other personalized ads that may be of interest to them – sparking the debate of whether random ads are better or worse as opposed to personalized ads.

Increased Promotion Costs

Ads on Facebook and Instagram have yielded strong returns on investments for many businesses and corporations alike. Unfortunately, some will have to look at other advertising mediums to reach out to prospective clients which involves an increase in promotion costs. Time spent looking for the ideal medium will also contribute to the increase in costs.

Many larger, well-known retailers will be able to endure these changes, yet it is the small business owner with their online store that may be affected the most.

Alternative Opportunities for Sellers

In the wake of Apple’s IOS 14.5 update, many businesses will be reeling but there are some opportunities that will see many sellers prosper and excel in a brand-new environment.

Online Marketplace and Ecommerce Platforms

Ecommerce platforms and online marketplaces like Shopify and Etsy already have a strong following of dedicated clients and users. Their following will only grow larger as other users are driven to visit these platforms as targeted ads begin to fade away into the background on Facebook and Instagram. Shopify and Etsy may attempt to establish some other direct channels to help fill the void left by personalized ads with a devoted online shopping/social media platform. It’s not difficult to see how this situation might cause fierce competition for the attention of shoppers leaving micro sellers on social media squeezed out of revenue. Where might micro sellers who depended on targeted ads find a captive audience? Look out for flexible marketplace platforms like Grammedit who are focused on an audience with specific needs to become an option for them.

Different Advertising Mediums

Another opportunity that businesses can take advantage of is to look at alternative advertising techniques. While the pull of social media remains incredibly strong, the increase in competition has left many sellers struggling to attain the levels of income that they had become accustomed to in the past. Mediums such as direct video infomercials – similar to The Shopping Channel – may see a resurgence while the increasing popularity of YouTube represents another viable option as you can create in-depth videos on your products and services. Who would have predicted a slow return to the days of shopping channel?

Influencers

As social media has grown, its seen the introduction of thousands of influencers that attempt to put their seal of approval on a product or service. This form of testimonial has seen fantastic success and will be seen by many sellers as the way forward to advertise their products. This will entail finding the right influencer who understand your brand but also has the following that may be interested in your product or services.

Final Thoughts

Privacy changes have been on the proverbial horizon for some time now so it shouldn’t come as a surprise to see the first steps being taken now. On the surface, it seems that Apple is trying to do the right thing but at the same time, Facebook is also attempting to do the same. As this battle continues, it’s up to you to get ahead of your competitors as change is coming whether you like it or not.

What are your thoughts with regards to apps asking users to track them and their data? Is this a good thing or are there better ways to do it? Share your thoughts in the comments below.

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