iOS 14.5 took $10 billion from Facebook, YouTube, Twitter and Snapchat
The fear shown by advertising companies and especially Facebook regarding the App Tracking Transparency (ATT) feature launched in iOS 14.5 was not for nothing. According to a report by the Financial Times newspaper, Apple’s privacy feature has reduced Facebook, Snapchat, Twitter and YouTube’s revenue by almost $10 billion.
New iOS 14.5 feature gives the public more controls over data stored by apps and services.
Feature reduces the amount of data collected by giants like Google and Facebook for targeted ads.
It is estimated to have costed US$ 9.85 billion, according to the Financial Times newspaper.
Just over six months after its launch ATT, showed why ad companies and social networks feared its launch, including ads against the feature aired in the United States before the launch of iOS 14.5 in late April.
The ATT turns personal data collection into yet another system permission, just like GPS, microphone and camera. Generally, the recorded information serves not only to identify the user of the service or app, 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 customer permission. It is even possible to turn off access requests completely, preventing apps from tracking activity on the device.
According to the FT, the change in default behavior, coupled with most people’s refusal to share their information, has led many advertisers to reduce their spending on social media platforms – shifting it to Android services and Apple’s own ad tool.
In addition, the return on investment of advertisers on social networks would have decreased, in some cases even by half, compared to the figures from before the TTA activation.
Although Facebook Meta – owner of Facebook, Instagram and WhatsApp – was the biggest loser in total revenue, with an estimated reduction of almost US$ 8 billion, in percentage terms Snapchat fared worse, as a result of its greater reliance on the mobile app. Which influenced a 24% drop in Snap’s shares last week.
In contrast, Apple’s advertising business unit posted record revenue last quarter, beating market expectations with a turnover of US$18.3 billion.
What do you think? Should OS developers have even more control over data at the expense of Social media?