Adam Mosseri, Instagram’s CEO, said the company would crack down on Apple’s proposed change to the iPhone operating system that would affect how it and other mobile advertisers track users. But he said, “I don’t think we have much control over Apple,” pointed out the power that Apple, as the sole gatekeeper for apps, has on about 1 billion of its devices in use today.
The change, affecting Apple’s ID for advertisers, or IDFA, was previously planned as a feature in iOS 1
In June, Apple announced that it would give iPhone users the option to block tracking when opening an app. Advertisers use this identifier to better target ads to individual users and to estimate how well they are performing. While the option to turn off tracking is typically anchored in a user’s options these days, many expect that most users will be encouraged to turn off tracking.
Speaking on CNBC’s “Squawk Box” Friday morning, Mosseri said that Instagram’s advertising business needs certain data in order to serve relevant ads to users and deliver value to advertisers, most of whom are small and medium-sized businesses.
“If the ecosystem changes in such a way that advertisers cannot really measure their ROI, it will be problematic for our company, but it will be problematic for all major ad platforms.” I’m not worried about it in the long run, “he said.” It becomes a lot more problematic for all small businesses. There are millions of them who rely on us to target and reach those customers. Especially during a pandemic when they are injured. ”
He argued that Instagram wants its users to be in control of their data and understand what data it has.
“We believe there is a way to be truly accountable and give people control over their data and visibility into their data without compromising our understanding and therefore acting blindly,” he said.
Facebook Parents Facebook was also spoken out about the change, saying it would “seriously affect publishers’ ability to make money on the Audience Network on iOS 14”.
Mosseri said the company needs to represent Apple, the public, policy makers, influencers and academics “as strongly as possible,” but said the company “owns most of the market here in the US for” smartphones and “[controls] the end-to-end ecosystem. ”
“You have an immense amount of power,” he said. “You can just decide that at no point can we launch new apps. We have seen a number of articles and even some legal disputes and their influence and power over developers over the past few months.”
Apple has been in a lengthy battle with Fortnite developer Epic Games since Aug. 13, when Epic Games released a version of Fortnite on the Apple App Store that included a method for users to pay for in-game content, without giving Apple the usual 30% cut. Apple removed the app from the App Store and Epic Games sued Apple later in the day.