Former Employees Explain What Facebook Has to Lose When Apple Implements App Tracking Transparency

As Apple prepares to implement App Tracking Transparency changes in iOS 14.5, CNBC spoke with several former Facebook employees to get details on why Facebook has been so heavily against the planned privacy updates.

Apple vs Facebook feature
Starting this spring, Facebook and other app developers will need to get express permission to access a user's advertising identifier, or IDFA, which is used to track usage across apps and websites for ad targeting purposes. Facebook has campaigned heavily against App Tracking Transparency, taking out full page newspaper ads and attempting to position Apple as an enemy of small businesses.

One of Facebook's main arguments is that Apple's changes will hurt businesses that use Facebook's advertising tools, but former Facebook employee Henry Love told CNBC that for many businesses, the change might not even be noticeable.

Less ad tracking data will prevent Facebook and its clients from targeting ads as effectively as they can now, but a lot of businesses may not need much data for effective ad targeting. A small coffee shop in Texas, for example, likely uses broad targeting categories like zip code and age range for ads, which is data that Facebook can collect from its own apps without the need for the IDFA.

"If you talked to any restaurant owner anywhere and asked them what IDFA is, I don't think any of them would know what that is," Love said. "It's affecting Facebook at scale. Not the small business owners."

Among the few "small business owners" who might feel the effects of the IDFA change are start-ups backed by venture capital money who have hired professionals with the skills to target users with sniper precision, Love said.

People who are targeting users across mobile, web, and the Facebook Audience Network with the IDFA are "not small businesses," with Love calling such companies "sophisticated, VC-backed startups."

App Tracking Transparency will threaten Facebook's view-through conversion tracking, a metric that lets ad companies figure out how many people saw an ad, didn't click it, but later made a purchase related to the ad. Retailers can record the info of the person who bought an item and then share it with Facebook, with Facebook able to determine whether that person's IDFA matches with a user who saw an ad for the product purchased.

CNBC says that the loss of this info could heavily impact Facebook because if advertisers can't accurately measure the effectiveness of Instagram and Facebook ads, they might shift more of their budget to other apps and services.

Facebook's Audience Network, which provides advertisements in non-Facebook apps, will also be impacted because it uses IDFA data to choose the best ads to show to users based on Facebook data. If users opt out of sharing the IDFA, Facebook's ad personalization efforts will be rendered useless outside of its own apps.

Facebook is planning to ask users for permission to access the IDFA, and is testing wording that suggests the tracking will provide a better ad experience. Facebook test prompts encourage customers to allow IDFA usage to "support businesses that rely on ads to reach customers."

Popular Stories

iPhone 17 Pro Iridescent Feature 2

iPhone 17 Pro Clear Case Leak Reveals Three Key Changes

Sunday August 31, 2025 1:26 pm PDT by
Apple is expected to unveil the iPhone 17 series on Tuesday, September 9, and last-minute rumors about the devices continue to surface. The latest info comes from a leaker known as Majin Bu, who has shared alleged images of Apple's Clear Case for the iPhone 17 Pro and Pro Max, or at least replicas. Image Credit: @MajinBuOfficial The images show three alleged changes compared to Apple's iP...
iPhone 17 Pro Dark Blue and Orange

iPhone 17 Release Date, Pre-Orders, and What to Expect

Thursday August 28, 2025 4:08 am PDT by
An iPhone 17 announcement is a dead cert for September 2025 – Apple has already sent out invites for an "Awe dropping" event on Tuesday, September 9 at the Apple Park campus in Cupertino, California. The timing follows Apple's trend of introducing new iPhone models annually in the fall. At the event, Apple is expected to unveil its new-generation iPhone 17, an all-new ultra-thin iPhone 17...
iphone 16 pro ghost hand

iPhone 17 Pro: 5 Reasons Not to Upgrade This Year

Monday September 1, 2025 4:35 am PDT by
Apple will launch its new iPhone 17 series this month, and the iPhone 17 Pro models are expected to get a new design for the rear casing and the camera area. But more significant changes to the lineup are not expected until next year, when the iPhone 18 models arrive. If you're thinking of trading in your iPhone for this year's latest, consider the following features rumored to be coming to...
xiaomi apple ad india

Apple and Samsung Push Back Against Xiaomi's Bold India Ads

Friday August 29, 2025 4:54 am PDT by
Apple and Samsung have reportedly issued cease-and-desist notices to Xiaomi in India for an ad campaign that directly compares the rivals' devices to Xiaomi's products. The two companies have threatened the Chinese vendor with legal action, calling the ads "disparaging." Ads have appeared in local print media and on social media that take pot shots at the competitors' premium offerings. One...
iOS 18 on iPhone Arrow Down

Apple Preparing iOS 18.7 for iPhones as iOS 26 Release Date Nears

Sunday August 31, 2025 4:35 pm PDT by
Apple is preparing to release iOS 18.7 for compatible iPhone models, according to evidence of the update in the MacRumors visitor logs. We expect iOS 18.7 to be released in September, alongside iOS 26. The update will likely include fixes for security vulnerabilities, but little else. iOS 18.7 will be one of the final updates ever released for the iPhone XS, iPhone XS Max, and iPhone XR,...
iPhone eSIM Feature

Apple Hints at iPhone 17 Models Lacking SIM Card Slot in More Countries

Sunday August 31, 2025 8:52 am PDT by
Another hint has surfaced that Apple is preparing to eliminate the physical SIM card tray from iPhones in more countries this year. In particular, a source familiar with the matter has informed MacRumors that retail employees at Apple Authorized Resellers in the EU are required to complete a training course related to iPhones with eSIM support by Friday, September 5. There are 27 countries...

Top Rated Comments

Apple_Robert Avatar
59 months ago
I think the world would be a better place with less tracking and no Facebook.
Score: 123 Votes (Like | Disagree)
AttoA Avatar
59 months ago
Did anyone really believe that Facebook cared about small businesses?
Score: 54 Votes (Like | Disagree)
jz0309 Avatar
59 months ago
can't wait for the release of 14.5 ...
Score: 42 Votes (Like | Disagree)
Rshill Avatar
59 months ago
Facebook is going to lose so hard.
Score: 34 Votes (Like | Disagree)
mossback Avatar
59 months ago
Have never had a facebook account and never will.
Score: 34 Votes (Like | Disagree)
TheYayAreaLiving ?️ Avatar
59 months ago

I think the world would be a better place with less tracking and no Facebook.
[HEADING=1]How about with NO TRACKING![/HEADING]
Score: 31 Votes (Like | Disagree)