Apple’s iOS Privacy Changes Cost Social Media Platforms Almost $10 Billion
Published: November 8, 2021
Apple announced a change in its privacy practice for the ATT policy in 2020. The App Tracking Transparency policy requires apps to obtain permission from users to track their data. It was put in motion in April 2021.
According to The Financial Times, Facebook, Twitter, Snapchat, and YouTube reported a loss of around $9.85 billion following the privacy changes.
A report from The Financial Times reveals why company leaders are frustrated. For instance, Facebook was hit the most because of its massive size. Hence, the company lost money in “absolute terms” compared to other social platforms.
Notably, Snapchat “fared the worst as a percentage of its business.” That is because its advertising is mainly linked to smartphones since there is no desktop version of Snap.
According to an adtech consultant, Eric Seufert, most social media platforms, especially Facebook, will have to reconstruct their machinery from scratch due to the App Tracking Transparency policy.
He further added that it might take these platforms at least one year to create new infrastructure. In other words, these companies need to develop new frameworks and tools from scratch. They also need to test these extensively before deploying them.
In the end, these social media platforms and other apps will have to find new revenue sources that do not involve tracking users on their iPhones. To put it differently, the ATT will make all these companies get more creative when it comes to advertising.
As such, these apps and platforms will have to either focus on creating ads for Android devices or invest in Apple’s advertising business.