Apple Digital Ads Gain on Facebook and Google
Everything You Need To Know In 50 Words Or Less
Fans of keeping their private information private are celebrating Apple’s new iSO update.
The new update titled App Tracking Transparency for the latest version of iOS has caused Apple’s advertising business to grow more than other digital platforms such as Facebook and Google.
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Apple released a new update with their latest version of iOS. The update called App Tracking Transparency essentially attempts to limit the release of data to stop the ability for advertisements to be targeted explicitly to the iPhone user.
The App Tracking Transparency iOS update requires iPhone users to grant Apple permission to share their data across various apps. The update also allows users to select the exclusion option from being tracked by specific apps.
By intercepting this allocation of personal data, the gigantic internet advertising economy that has primarily evolved through using accumulated data for constructing user profiles and then pushing advertisements founded on those profiles is taking a sharp tumble.
What Does This Mean?
Digital giants such as Facebook and Snapchat are especially feeling this impact since most of their profits derive from the money they make from advertisers using their platforms for their promotions.
These companies saw their advertising adoption rates take a quick dip. Both companies saw a two to three percentage points fall compared to one year ago in ad adoption rates. Advertisers are shying away from these companies in an attempt to find ways to continue to create user profiles.
This drop in adoption rates is another sign of declines in returns for these companies, as META, the parent company of Facebook, shares dropped around 52%, and Alphabet, the parent company of Google, dropped nearly 25%.
Snapchat took the biggest hit this year, with shares dropping around 75%. Apple escaped most of the drop in shares by only dropping about 14% in shares.
Following last year’s controversial iPhone privacy update, Apple’s ad business saw gains as it minimized app developers tracking efforts. Apple’s ad business has grown to 94.8% over the last year.