Facebook values small businesses so much. It is now standing up and speaking up for small businesses. The new iOS 14 policy of Apple will pose a harmful impact on many small businesses that are already having a difficult time staying afloat, especially now that the global COVID-19 pandemic is affecting them. For this reason, the social media giant Facebook is taking a stand to protect small businesses and help them thrive.

Below are what Apple is doing and Facebook’s stand against those:

Apple is Creating A Policy That is Enforced Using iOS 14’s AppTracking Transparency

According to Facebook, this move done by Apple is not privacy. Instead, it is about gaining profit. It will also force businesses to turn to subscriptions and other in-app payments to get revenue. This means that Apple will earn profits. For this reason, many services will have no choice but to begin charging or exit the market.

The Value of Small Businesses On Facebook

They are Negatively Affecting Small Businesses and Publishers Who are Already Struggling Due to the Pandemic

Facebook said that these changes would directly affect small businesses’ ability to effectively and efficiently use their budgets for advertising effectively and efficiently. The social media giant’s studies show that without personalized ads powered by their own data, small businesses would witness a cut of more than 60 percent of website sales from advertisements. 

True enough, the proposed iOS 14 changes will not cause a full loss on small businesses’ ability to personalize. However, such will happen over the longer term.

Apple is Not Playing By Its Own Rules

One thing worth noting that Facebook found out is that Apple’s own personalized ad platform is not subject to its new iOS 14 policy. 

Facebook Disagrees With the Approach of Apple. However, the Social Media Giant Does Not Have a Choice But to Show Its Prompt

Facebook said that if it does not show Apple’s prompt, it will face retaliation from the company. If this happens, it will cause more harm to the businesses that Facebook wants to support.

The Value of Small Businesses On Facebook

For many years, Facebook has been working with small businesses to help them grow. Dan Levy, Facebook’s Vice President for Ads and Businesses, said that he worked with small businesses for 20 years. According to him, he feels privileged to see firsthand how the internet has significantly changed the trajectory for many businesses and the people behind them. Due to the benefits that the internet brings, a person could turn a mere idea into a business by just using their computers or mobile devices. 

What is Happening With Apple’s iOS 14 Update

One of the major reasons the above became possible is that the internet has made it easier for entrepreneurs to access affordable marketing. Dozens of platforms are now available to support small businesses. Some provide free website setup, logistics, payments, and financing. However, you need to find customers for a business to grow and flourish. 

Using Facebook, you no longer need an expensive agency to help you. There is no need for a five-figure budget or any fancy production equipment. Instead, businesses can run their own campaign using a smartphone and only a few dollars. In fact, Levy said that he had met many business owners. He said that the best part of working on Facebook is that he can hear stories from individuals who could transform their lives and communities through the use of tools that turned an idea into a thriving business. 

However, Apple is proposing that its iOS 14 AppTrackingTransparency policy puts all the aforementioned things at risk. While large businesses will benefit, the small ones will suffer. Levy said that Facebook has heard from many small businesses that they are concerned about how Apple’s changes can impact their ability to grow and reach customers. Worse, it will also make it more difficult for them to survive in a pandemic. This is the reason why Facebook is speaking up for small businesses.

Last June, Apple announced a new policy that will require apps to display a discouraging prompt. This prompt will negatively affect their ability to build their businesses.

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You may be asking, “who is affected by Apple’s new policy?” The answer is simple– small businesses. The coffee brewery in your neighborhood, your cousin’s retail business, your friend’s event planning service, and those game developers who let you use the app they built for free will all suffer.

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Creators and entrepreneurs rely on advertising to make a profit. In return, they provide free content to people. Some examples of this free content are morning news, the mobile games you play for free, and even the comedy shows you watch.

If the individuals who run these businesses cannot rely on effective and efficient advertising to profit, they will have no choice but to look for other ways to keep thriving. This could be in the form of charging people for in-app payments or a subscription. If this happens, free websites will start charging people for services. When worse comes worst, they will disappear completely. True enough, paying content may be fine for those who have the resources. However, a lot of people do not have the budget for these fees. 

The Value of Small Businesses On Facebook

Final Thoughts

Moreover, it isn’t easy to quantify the impact on publishers and content creators at this point. But in testing, Facebook found out that publishers experienced more than a 50 percent drop in revenue after personalization was removed from mobile app ad installed campaigns.

There is no denying that Facebook clearly supports small businesses. For this reason, it has taken a stand for these businesses’ rights and the benefits that they could get. The social media giant also made it clear that it disagrees with Apple’s approach. However, it does not have a point but to show its prompt.


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