Facebook Chief Revenue Officer David Fischer claimed this week that the company’s revenue model is “under assault” after Apple announced changes that will limit the data that companies like Facebook can collect from smartphone users. The new feature, which will be built into a future update of iOS, will offer users the option to block tracking when opening an application.
According to a report by CNBC, Facebook executive David Fischer is panicking over a new privacy feature that will be made available to iPhone users in the future that will limit the data collected by companies in order to serve targeted advertisements.
When the feature is fully implemented in iPhones, social media companies like Facebook will have to scramble to open up other revenue streams as it may become impossible to serve private users with targeted advertisements.
Facebook Chief Revenue Officer David Fischer claims that the company’s revenue model is threatened by the new changes. “The economic model that not just we at Facebook but so many businesses rely on, this model is worth preserving, one that makes content freely available, and the business that makes it run and hum, is via advertising,” Fischer said.
“And right now, frankly, some of that is under assault, that the very tools that entrepreneurs, that businesses are relying on right now are being threatened. To me, the changes that Apple has proposed, pretty sweeping changes, are going to hurt developers and businesses the most,” Fischer added.
Fischer suggested that Apple is imposing its business philosophy on other companies by offering the new privacy feature to iPhone owners. He suggested that Facebook may have to charge users for access to the platform if they are unable to serve advertisements.
“I don’t think it’s appropriate to then dictate that has to be other business models,” Fischer finished. “And the one that we believe is so valuable, one that relies on advertising, in our case, personalized ads, to enable free products, enable businesses to launch and grow and thrive, we’re going to defend that. And we think it really important that not just we but our industry does that.”
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