Julia Sta Romana

Top Contributor
May 2, 2017
" Last month, Facebook sent out a warning to Audience Network advertisers, explaining that the changes to Apple's Identifier for Advertisers (IDFA) system could potentially cripple its expanded ad network once it's rolled out. And this week, in an interview with CNBC, Instagram chief Adam Mosseri has also flagged concerns the update, and how it could impact Instagram advertisers moving forward.

As a brief explainer, IDFA enables app owners to track individual user data within apps, including actions taken in the app, device info, acquisition insights, etc. iOS users can currently opt-out of IDFA tracking, but the settings for such are not readily accessible, and require some digging to find. The update to iOS 14 will make IDFA explicitly opt-in, with a new pop-up prompt for each app.

The concern is that this will see many more users opting out, significantly reducing tracking capacity, and subsequent ad targeting options as a result.

Read more: Instagram Warns of Major Impacts to Ad Targeting as a Result of Apple's iOS 14 Update

How would this impact businesses?

SMBs that use IG and Facebook ads rely heavily on data to target the right market. Without access to that information, you could end up spending more on ads. Your ads would be less targeted or less effective.

And it seems like Instagram hasn't found a way around this.

Advertisers would have to be more creative now in getting new data or testing ads to minimize cost.