Facebook warns that iPhone software changes will hurt its advertising business

Facebook says its ability to serve ads to iPhone users will be significantly curtailed by Apple's latest software update.

Facebook says its ability to serve ads to iPhone users will be significantly curtailed by Apple's latest software update.

Apple's new operating system, iOS 14, places additional restrictions on user data that make it harder to serve them with targeted ads, Facebook said in a note to developers Wednesday. The biggest impact from the changes will be on Audience Network, Facebook's service that allows advertisers to target users even when they're using non-Facebook apps. Facebook did not reveal how much of its business the service comprises, but cited tests showing that removing personalization led to a more than 50% drop in revenue from the Audience Network.

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