APPLE NEWS

Transparency of application tracking has hit social networks for $ 10 billion in lost revenue so far


AppleInsider is supported by its audience and can earn a commission as an Amazon Associate and associate partner for eligible purchases. These affiliate partnerships do not affect our editorial content.

Apple’s pressure on privacy has cost social media companies dearly, and advertising revenue for Facebook, Twitter, Snap and YouTube fell by nearly $ 10 billion in the second half of 2021 due to the transparency feature of iOS app tracking.

The introduction of application tracking transparency in April provided users with a way to choose between in-app and online tracking or privacy retention. Half a year later, ATT seems to be reducing the income of large companies on social networks.

According to Lotame’s advertising technology in a conversation with Financial Times, Facebook, YouTube, Twitter and Snap revenue fell 12% in third- and fourth-quarter revenue, to a total of $ 9.85 billion.

Of the four companies, Facebook recorded the largest decline overall due to its size in the advertising market, with a loss estimated at more than $ 8 billion. However, Snap did the worst in percentages due to the focus on smartphones.

The decline in revenue is a continuation of early discoveries soon after the introduction of ATT. In July, it was calculated that ATT caused a drop in revenue of 15% to 20% for iOS advertisers.

According to Lotame CEO Mike Woosley, advertisers record reduced results when advertising to iPhone users because most have given up on tracking social apps.

In one example, a brand of underwear intended for men would previously win one customer for $ 5 spent on advertising intended for 1,000 men. According to Woosley, “to get 1,000 men, you have to show it in front of 2,000 people, because all of a sudden you don’t know who’s a man and who’s a woman.”

As a result, Woosley says, “your acquisition costs have doubled, and the lost return is 50%.”

The loss of tracking has forced companies to work on their advertising systems to address the privacy-focused idea. According to Adtech consultant Eric Seufert, it could take a year for new tools and frameworks to be produced, as they “need to be developed from scratch and extensively tested before being implemented by a large number of users”.

In response to Apple’s changes, Facebook CFO David Wehner called ATT “challenging” and “a little distracting than we expected.Alphabet has enough first-party data that it doesn’t have to track users through third-party apps, isolating it from its effects.

Apple, meanwhile, has seen an improvement in its advertising business, helping services rise to $ 18.3 billion in the last quarter. Increased advertising revenue has sparked calls for hypocrisy from Apple.

“None of this is altruistic,” according to BlueConic COO Cory Munchbach. “Apple did a great job turning privacy into a PR game, but they wouldn’t have done it if it wasn’t for the money.”



Source link

Naveen Kumar

Friendly communicator. Music maven. Explorer. Pop culture trailblazer. Social media practitioner.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button