Small businesses could see a cut of over 60% of website sales from ads with new Apple IOS Update

If you haven’t read the news or seen the ad in the WSJ, Apple’s new iOS 14 policy will have a harmful impact on many small businesses.

SMBs could see a predicted 60% drop in sales when this new operating software comes into full affect next year.

In June, Facebook ran a test that constrained delivery to just mobile to a small audience which showed that when ad personalising was removed some publishers experienced more than a 50% drop in revenue.

‘Apple is taking away one of small businesses’ key tools that helped them survive this pandemic.’ said Dan Levy, VP Ads and Business Products for Facebook in his blog post on 16 December.

Facebook vowing to not go down without a fight!

As VIP Facebook Advertiser in the top 2% of Advertisers on the platform we receive advanced intel, info and guidance before the general public.

As part of the new Apple product update, set to be implemented in early 2021, Apple will force Facebook users and other apps to decide whether or not they want to be tracked by Ads.

This privacy feature is already installed as part of the iOS14 Update however Apple has not made this feature mandatory to App Developers as yet.

Apple will require a prompt (seen above) for every Facebook and Instagram user.

What this means is that a significant number of Facebook and Instagram users may opt-out of being tracked by Ads.

The way Facebook and Instagram Ads are delivered is heavily reliant on being able to track users, customise ads to each individual user based on interests, behaviour, values and what each user is more likely to buy and serve those ads to the right people.  This AI system allows highly-targeted ads to people “most likely to buy or take the desired action”.

If a significant number of users opt-out, say for example, 50 percent, this will have a strong negative impact on your advertising results.

We have already received initial reporting on the impact and suggested initial steps to combat these issues, with further conference calls, webinars and reports to be released to us in early January.

If you would like to get ahead of these issues and get access to our intel, reports, and guides, you can join a special group I have put together so that we can all work on this together.

We have some actions you can take right now to get ahead of the situation and prepare yourself for the changes in 2021.

Upon joining you will be added to a special Facebook Group, receive our current intel on the updates and all future updates as soon as we receive them through our close relationship with Facebook Inc.