Until now, advertisers coulduse a device ID number called the IDFA to better target ads and estimate their effectiveness. In iOS 14, each app that wants to use these identifiers will ask users to opt-in to tracking when the app is first launched.
The change is expected to start impacting Facebook's advertising in the third quarter but it will have a more pronounced effect in the fourth quarter, Wehner said.
The company forecast revenue growth for the third quarter of about 10%, beating analysts' expectations for growth of 7.9%."Our view is that Facebook and targeted ads are a lifeline for small businesses, especially in the time of Covid, and we are concerned that aggressive platform policies will cut at that lifeline at a time when it is so essential to small business growth and recovery," Wehner said.