facebook highlights small businesses as it ramps up apple criticism

Facebook has openly expressed its disapproval of Apple’s forthcoming limitations on app tracking and ad targeting, and this public disagreement has escalated further today.

During the summer months, Apple revealed that, starting with iOS 14, application developers would be required to obtain explicit user consent before utilizing IDFA identifiers for the purpose of ad targeting. While fundamentally offering users greater control, the expectation is that the need to actively opt-in will significantly decrease the extent of app tracking and targeted advertising.

The implementation of this change was postponed until the beginning of the next year; however, Facebook indicated that this development could potentially lead to the discontinuation of its Audience Network – a system that leverages Facebook data to deliver targeted advertisements on external websites and applications – within the iOS environment.

This morning, Facebook published advertisements in prominent newspapers including The New York Times, The Wall Street Journal, and The Washington Post, asserting its commitment to “defending small businesses against Apple.” Simultaneously, the company released a corresponding blog post and dedicated website articulating the same viewpoint.

Although this initiative could be perceived as a public relations effort to present a more favorable image while safeguarding Facebook’s advertising revenue, Dan Levy – the company’s Vice President of Ads and Business Products – participated in a conference call with journalists to present a different perspective.

Levy explained that Facebook’s “diverse” advertising operations will not be as severely affected as smaller enterprises, particularly as the company has already accounted for potential challenges in ad targeting within its latest earnings report.

“We have already integrated this consideration into our business projections,” he stated.

Conversely, Levy emphasized that small businesses depend on targeted advertising to maximize the effectiveness of their campaigns – and, given their limited financial resources, this efficiency is crucial. He forecasted that if Apple proceeds with its plans, “Small businesses will face difficulties in remaining viable, and many potential entrepreneurs may be unable to launch their ventures.”

Levy was joined by two small business owners: Monique Wilsondebriano, representing Charleston Gourmet Burger Company in South Carolina, and Hrag Kalebjian, owner of Henry’s House of Coffee in San Francisco. Kalebjian noted that while his coffee shop’s revenue has decreased by 40% compared to the previous year, his online sales have tripled, attributing this growth to targeted Facebook campaigns that allowed him to share personal narratives about his family’s passion for Armenian coffee.

Wilsondebriano shared that when she and her husband, Chevalo, began selling their homemade burger marinade, “we lacked the financial means to invest in radio or television advertising” – and therefore turned to Facebook and Instagram. With the marinade now distributed across 50 states and 17 countries, Wilsondebriano expressed, “The prospect of this update is disheartening, as it may deprive many small businesses of the same opportunities that Cheval and I experienced.”

Levy also suggested that Apple’s financial performance could be positively impacted by these changes – if developers generate less revenue from advertisements through Facebook and other platforms, they may increasingly rely on subscriptions or in-app purchases (subject to Apple’s commission), or potentially utilize Apple’s own targeted advertising solutions.

Several advertising industry organizations have also voiced concerns regarding Apple’s policy, with SVP Craig Federighi responding in a speech that refuted what he characterized as “unfounded” and “inaccurate” assertions from the adtech sector. Federighi clarified that Apple’s App Tracking Transparency feature is intended “to empower users to determine whether or not to permit an application to track their activity in a manner that could be shared across other applications or websites owned by different companies.”

Update: Apple has issued the following statement.