Fear of advertising companies in particular Facebook, demonstrated in connection with the App Tracking Transparency (ATT) feature launched in iOS 14.5 by Apple was not in vain. According to the newspaper’s report Financial Time,, Apple The privacy feature has reduced the revenue of Facebook, Snapchat, Twitter and YouTube by almost 10 billion dollars.
Just over six months after the launch of ATT, it showed why advertising companies and social networks are afraid of its launch, including ads against this feature broadcast in the United States before the launch of iOS 14.5 in late April.
ATT turns personal data collection into another system license, just like a GPS, microphone and camera. In general, recorded information serves not only to identify users of a service or application, but also to personalize and target content and ads – potentially improving engagement and time spent on different platforms.
By default, iOS and iPadOS from version 14.5 onwards turn off data collection, forcing apps to ask for user permission. It is even possible to completely turn off access requests, preventing applications from tracking activity on the device.
According to the FT, the change in standard behavior, along with the refusal of most people to share their information, has led many advertisers to reduce their spending on social media platforms – switching them to Android services and Apple’s own advertising tool.
In addition, the return on advertiser investment on social media would be reduced, in some cases by half, compared to pre-TTA activation figures.
Although Meta – the owner of Facebook, Instagram and WhatsApp – was the biggest loser in total revenue, with an estimated reduction of nearly $8 billion, in percentage Snapchat went up as a result of its greater reliance on the mobile app, which affected Snapchat shares fell 24% last week.
In contrast, Apple’s advertising business unit recorded record revenue in the last quarter, exceeding market expectations with a turnover of $18.3 billion.
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source Financial Time
Privacy | App Tracking Transparency | Apple