Apple's iOS 14.5 Update Really Is Impacting $FB Ads

Earlier this week, reports suggested Facebook and advertisers were in panic mode because of negative impacts from Apple's iOS 14.5 update pushed in April.

To recap (if you haven't been following) the iOS update requires consumers to opt in to app tracking...the kind of tracking Facebook uses to serve up highly targeted ads.

It's estimated that only about 17% of users worldwide have opted in to tracking...

First of all, 17%ers..let's chat. Second of all, if you're Facebook...ouch.

While generic targeting isn't highly impacted, "custom audiences" are. This custom audience feature is how Facebook knows when you've added an item to a shopping cart somewhere and abandoned it, and the exact same item just-so-happens to appear as an ad in your news feed.

According to researchers, "this type of targeted ad typically receives one of the highest Return on Ad Spend (ROAS) ad sets."

At LikeFolio, we can actually see this loss in efficacy in consumer data.

Facebook and Instagram product discovery mentions are dropping after solid growth since 2016, with Facebook displaying a more severe drop-off vs. Instagram. (Mentions like this)

• Facebook Discovery Mentions: -44% YoY
• Instagram Discovery Mentions: -33% YoY

It's relevant to note, these mentions are now actually lower vs. 2019 levels.

Comprehensive Facebook user growth has slowed significantly in the last year, which isn't helping to counter-act this trend.

We'll be watching this closely moving forward to see if Facebook is able to adapt its platform to keep advertisers around.