Mark Zuckerberg, Facebook Co-Founder and CEO, testifies before the House Financial Services Committee at the Rayburn House office building on Capitol Hill on October 23, 2019 in Washington, DC. On Facebook’s proposed cryptocurrency scale, Zuckerberg testified how his company will handle false and misleading information from political leaders and how it will handle its users’ data and privacy during the 2020 campaign.
Chip Somodevilla | Getty Images News | Getty Images
Facebook CEO Mark Zuckerberg said Thursday he was confident the social media company could “manage” Apple’s upcoming planned privacy update to iOS 14, which will make it easier for iPhone and iPad users, corporations to prevent them from specifically tracking their activity ads.
“We’ll be in a good position,” said Zuckerberg on Thursday afternoon in a clubhouse room.
The upcoming Apple privacy changes will notify users about their device ID tracking and ask if they want to allow it. Tracking is based on a unique device identifier on each iPhone and iPad called IDFA. Companies that sell mobile phone advertising use this ID to target advertisements and gauge their effectiveness.
Apple announced that the change will be rolled out earlier this spring.
Zuckerberg said the change could benefit Facebook if more companies choose to sell goods directly through Facebook and Instagram.
“It is possible that we will be in an even stronger position if Apple’s changes encourage more companies to do more trading on our platforms by making it harder for them to use their data to find the customers who want to use their products outside of our platforms, “Zuckerberg said.
Zuckerberg’s comments are the most optimistic statements Facebook has made about how the impending Apple changes could affect the company’s advertising business.
In July 2020, Facebook CFO David Wehner said Apple’s changes to iOS 14 could affect the social media company’s ability to target ads to users, and in August 2020 the company said the changes would lead to a decrease in audience levels. Network could lead to advertising business by more than 50%, which is less than 10% of the company’s net sales. The company announced to investors during its fourth quarter earnings in January that the impact of Apple’s changes in late first quarter could have an impact on Facebook’s business.
Facebook has prepared for the upcoming Apple changes with the launch of more commerce products.
The social media company in particular introduced Facebook shops and Instagram shops in 2020. These features allow brands to list their product catalogs right on Facebook’s most popular apps and sell goods directly on Facebook and Instagram.
Zuckerberg said Thursday that Facebook already has 1 million active stores in its service and 250 million people are actively using stores.
“Compared to the early conversations about how people would use this on Facebook and Instagram and in our product, I think this is well on its way to becoming something that is becoming increasingly important to people,” Zuckerberg said .