Apple takes privacy seriously, and while its drive for increased user protection gives users control of their data, it may have unforeseen consequences on a wide range of businesses. Beginning with an online giant in the advertising world.
Meta recently warned that Facebook could face a $10 billion dollar loss in 2022. That seems like a lot of money but compared to the almost $29 billion Facebook will see in the first quarter of the year, it’s not going to break them, but it did send their share prices down substantially.
Facebook directly attributed this downward trend to Apple’s privacy policy and European privacy initiatives. What most of us know as “Ask App Not to Track” is the App Tracking Transparency (ATT) introduced by Apple in iOS 14.5.
Privacy does not equal profit when the currency is personal data, and many companies are looking for ways to replace the targeted ad revenue they previously relied on. Large companies can pivot to new advertising methods but small businesses that are dependent on personalized ads may end up raising prices to remain profitable.
Another result of ATT is that previously free apps which relied on targeted ads will need to charge for the app and in-app purchases. Apple takes a 30% fee from apps that sell on the App Store.
Search companies, like Google, are changing their format ahead of the curve and will be eliminating traditional tracking methods to deliver personalized ads. Its new system will give advertisers access to areas of interest based on recent browsing history.
Why does it matter if people opt out?
What that means is that companies don’t have access to what users are searching for or buying. When a user opts out, the device ID used to target and measure the effectiveness of online ads, the IDFA, can no longer be accessed by apps.
So, while many iPhone users may have assumed that by opting out that they would see less ads, what it really means is that they will see ads that are not related to their interests. But you are also less likely to see more ads for something you’ve already purchased. That happens to me all the time!
Apple’s commitment to privacy allows users to make their own choices about what they want apps to know. You may not want every app to know what you are looking for, but it may make sense to allow some access.
And you can always change your mind and update the settings for an app that you opted in or out of tracking. Apple really is all about giving users control over their data.
Share this interesting post about iPhone Privacy vs Facebook with your Friends and Family by using the Share Buttons below… I really appreciate you helping to spread the word about my Free Daily iPhone Tips! 🙂
And as you said, the Europeans are in with Apple. The landscape is indeed changing.