Apple’s App Tracking Transparency (ATT) policy has been one of the most controversial privacy changes that happened this year. Many social companies have growing concerns about this implementation which could impact their ad businesses.
A recent report said that Facebook (now Meta), Twitter, Snapchat, and YouTube had been affected by this feature. The investigation concluded that an almost $10 billion drop in revenue was recorded following the Cupertino giant’s privacy practice.
App Tracking Policy Causes Revenue Drop
(Photo : Laurenz Heymann from Unsplash)
Apple’s ATT policy has reportedly caused the social media firms to nearly $10 billion in revenue drop. Here’s the full report.
According to a report by Apple Insider, it was only in April when Apple’s App Tracking Transparency made its way to several social media platforms.
After more than six months, the said iOS ad-tracking feature has been inflicting some damage to the companies.
In an interview with Financial Times, Lotame, a data collection company focused on ad technology, said that there was a significant drop in revenue for Facebook, Snap, YouTube, and Twitter. Particularly, a total of $9.85 billion in revenue decline accounting for a 12% decline was discovered by the data management firm.
Lotame COO Mike Woosley pointed out that the App Tracking policy resulted in fewer ad results for iPhone users.
“To get 1,000 men you have to show it to 2,000 people, because all of a sudden you don’t know who is a man and who is a woman,” Woosley spoke about an underwear brand.
Furthermore, Woosley highlighted that the cost in acquisition produced double pricing as the lost yield resulted in 50%.
Eric Seufert, who is an ad tech consultant, said that it would consume several years to produce the tools for advertising. Moreover, there is a need for them to undergo thorough testing before being used by the consumers.
Read Also: Facebook Advertisers’ Cross-App, Cross-Site Tracking Rejected by Apple iPhone, iPad Users | FB Now Panicking!
Facebook and Twitter on App Tracking Transparency
The Verge reported that Facebook has been making a bold move to criticize Apple’s ATT policy. The latest report revealed that the social media giant had lost money “in absolute terms” in comparison to other firms.
Although other social app-focused titans were affected by App Tracking privacy changes, Facebook suffered the most damage in revenue drop.
Facebook CFO David Wehner said that dealing with ATT was “challenging. He also added that it was slightly disruptive to their expectations.
On the other hand, Twitter could have been impacted by Apple’s iOS ad tracking capability, but there’s more to know about this company. According to Forbes, Twitter’s quarterly ad revenue rose to over $41% despite the iOS privacy changes.
With that, there’s only a minimal loss for the part of Twitter. As the company looks forward to the conclusion of the fourth quarter, there’s still a modest result to be expected in the total revenues when it comes to App Tracking policy changes.
Meanwhile, Apple said that its last quarter growth reached $18.3 billion. According to Cory Munchbach, the COO of BlueConic, the Cupertino giant has done a great job for its implementation.
Snap CEO Talks About Revenue Decrease Following ATT
Last month, Tech Times reported that Snap CEO Evan Spiegel said that the tech giant’s ATT policy had disrupted their ad-targeted business. Despite the revenue drop, Snapchat saw 306 million active subscribers who use the app daily.
Elsewhere, the usage of Apple Search ads climbed to 58% from 17% for this year.
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Written by Joseph Henry
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