Since Apple’s AppTrackingTransparency (ATT) framework in iOS 14.5 took effect in late April, Facebook has experienced steadily worsening data loss as iOS users have adopted the update. For Facebook, data loss includes user-level data posted back from IDFAs as well as the Facebook pixel, the piece of tracking code placed on brand websites.
As of Q3 2021, iOS 14.5+ adoption among US social media app users had effectively reached full impact. Opt-in rates among US Facebook and Instagram users are low, cutting off Facebook’s ability to track web or app conversions and activity by a large majority of iOS app users. For advertisers, this has diminished the accuracy of targeting and measurement of Facebook campaigns.
Despite Apple’s iOS privacy changes, we estimate that US advertisers will spend $50.30 billion on Facebook advertising in 2021, up 32.1% from last year. That’s a significant increase versus our March 2021 and October 2020 expectations, when we predicted growth of 26.6% and 21.8%, respectively.