An inquisition conducted by The Financial Times had revealed that Snapchat, Facebook, Twitter, as well as YouTube have lost around $9.85 billion in revenue after Appleās changes to its app tracking policy practices. Apple had announced the new App Tracking Transparency (ATT) policy, which requires apps to ask permission to track usersā data. The policy took effect in April, barring apps from tracking users if they opted out.
The backlash for Appleās app tracking policy by big companies
Facebook had notably criticized this move via a full-page newspaper ad. Thanks to the Financial Timesās report, we know why companies were so frustrated. The report says that Facebook lost the most money āin absolute termsā, due to its massive size. Snap āfared the worst in terms of percentage of its businessā as its advertising is mainly reliant on smartphones, as it doesnāt have a specific desktop version.
āFew platforms were heavily impacted, however, especially Facebook, have to rebuild their machinery from scratch as a result of ATT,ā Adtech consultant, Eric Seufert conveyed to FT. āI believe it might take at least a year to construct the new infrastructure. As new tools, frameworks have to be developed from the ground, they have to be tested extensively before being deployed to the majority of users.ā
Appleās new policy will force social platforms as well as other apps to get more creative regarding their advertising. Does this mean focusing on Android devices? OR. Investing in Appleās advertising business, which itself was close to breaking its own rules by quietly collecting user data, exactly how third-party apps did. Theyāll have to figure out an alternative source of revenue, which doesnāt involve tracking people with their iPhones.
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