Saturday, November 27, 2021

Apple’s ad tracking technology is costing Facebook, YouTube, and Snapchat billions

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Apple’s decision to stop cross-platform tracking for social media companies like Snap, Facebook, Twitter and YouTube has hit their advertising companies drastically.

The iPhone maker’s app tracking transparency, launched in April, forced apps to ask permission before tracking users to serve personalized ads.

With many users logging out and refusing to reveal their data, the four tech companies have lost an estimated 12 percent of their sales – the equivalent of $ 9.85 billion, according to the Financial Times.

Snap, owned by Snapchat, lost the most due to its focus on the mobile market, while Facebook lost significantly more than the other platforms overall due to its size. Experts say that TikTok becomes more attractive because it’s cheaper than advertising on Facebook.

“Some of the hardest hit platforms – Facebook in particular – have to rebuild their machines from scratch because of ATT,” said Adtech consultant Eric Seufert the Financial Times.

“I am convinced that building a new infrastructure will take at least a year. New tools and frameworks must be developed from the ground up and extensively tested before they are made available to a large number of users. “

However, as policies change, Apple appears to be cementing its power in the advertising market.

the Financial Times reported in April that it would expand its business under the policy, and the company’s software chief Craig Federighi said so Wall Street Journal Apple’s own apps – like Music, News, Arcade, Fitness, and TV – are exempt from displaying the ATT prompt because “they don’t track users across apps they don’t own.”

Instagram boss Adam Mosseri said he “would like to adopt the language Apple uses for its own products” as one of several critics who thought the change was unfair.

However, Apple’s chief data protection engineer said the controversial update was an attempt to ensure that users “have a great experience and that their rights are respected”.

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