Apple will rip $10 billion from Facebook’s pockets this year
Meta recently shared its 2021 fourth-quarter earnings during a company conference call. In addition to losing users at an unprecedented rate, Facebook is also losing a massive amount of revenue as a result of Apple’s app tracking transparency feature.
A few months ago, a financial report came out that suggested several major platforms, including Facebook, Snapchat, Twitter, and YouTube, were losing about $10 billion combined in the second half of 2021 due to Apple’s new policy.
As it turns out, the outlook is even worse for Facebook going forward. In the recent earnings call, Meta CFO Dave Wehner said, “the impact of iOS overall as a headwind on our business in 2022 is on the order of $10 billion.”
So Facebook is set to lose about $10 billion in advertising revenue over the course of the year. Of course, that news combined with the fact that the platform is losing users helped to plummet the company’s stock price by more than 20 percent.
Apple’s app tracking transparency seems to affect Facebook more than most other apps. The platform built its entire business model around collecting user data to sell personalized and targeted ads. Now, one change in Apple’s policy has singlehandedly crippled that entire model to the tune of $10 billion.
Facebook has had a good run as the king of digital advertising over the last decade or so. But Apple’s app tracking transparency looks to change that by giving users more control over their own personal information.
But don’t worry. Zuckerberg and the rest of his posse still have pockets that are plenty deep. Apple’s app tracking policy change isn’t enough to end the Meta/Facebook empire on its own.
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