Apple’s changes could cost social media giants $ 10 billion
Several social media platforms, including Snap, Facebook, Twitter and YouTube, will see their revenues significantly affected by changes to Apple’s privacy settings on iPhones, according to the Financial Times (FT).
The combined companies lost about $ 9.85 billion because of the change.
Apple’s new app tracking transparency policy, rolled out in April, requires apps to request permission before tracking user activity and sending personalized ads. Many users have unsubscribed.
Therefore, advertisers don’t know how to target users.
According to Facebook COO Sheryl Sandberg, changes to the iPhone have resulted in “the accuracy of our ad targeting decreased, which has increased the cost of results for our advertisers. And… measuring these results has become more difficult.
Facebook is probably the company that will lose the most, due to its increasing costs each year for businesses to serve ads.
Aidan Corbett, managing director of Wayflyer, which offers financing for online shopping, said companies that can’t get as much from Facebook advertising are likely to “walk away immediately.”
He said TikTok is getting more and more popular because it doesn’t have the same high costs to serve ads.
The FT report notes that Snap was affected by the slow pace of iPhone changes, as the changes were released in late April but didn’t start reaching customers at the highest level until a few months later in June.
Twitter saw its ad revenue increase 41% in the last quarter, and the company said it was not affected as much by Apple’s policies as its ads focus more on context and image. branding than on monitoring customer habits.
And Alphabet has enough first-party user data that it doesn’t have to track users into other apps.
PYMNTS reported that Alphabet’s Google Q3 performance was accompanied by further improvements in search and ads.
Read more: Ad spend and connected initiatives improve Alphabet / Google in Q3
Google Ads, according to the call for results, was working with Apple’s changes, with CEO Sundar Pichai saying “search remains at the heart of what we do.”