Apple iOS privacy changes cost social media companies nearly $ 10 billion, Telecom News, ET Telecom
New Delhi: Apple iOS privacy changes cost social media platforms like Facebook, Snapchat, Twitter and YouTube over $ 9.85 billion in revenue in the second half of the year.
A Financial Times investigation found that Snapchat, Facebook, Twitter, and YouTube lost around $ 9.85 billion in revenue after Apple introduced the App Tracking Transparency (ATT) policy last year.
Advertising technology company Lotame estimates the four technology platforms lost 12 percent of revenue in the third and fourth quarters, which is roughly $ 9.85 billion.
The new iOS App Store policy requires apps to ask for permission to track user data.
The policy went into effect in April and bans apps from tracking users when they log out.
According to the report, Facebook lost the most money “in absolute terms” because of its huge size when compared to other social platforms.
“Facebook has the most to lose because the cost of advertising on its platform has been rising for years,” the report said on Sunday.
Since the introduction of the Apple iOS policy, most users have opted out so advertisers don’t know how to target them.
“Advertisers have responded by cutting their spending on Snap, Facebook, Twitter and YouTube and redirecting their budgets elsewhere: particularly for Android phone users and for Apple’s own growing advertising business,” she added.
Snap “did worst as a percentage of its business” because its advertising was mostly linked to smartphones.
Facebook CEO Mark Zuckerberg has criticized Apple for its App Store policies, saying that the iOS privacy changes are having a negative impact on his business.
In a conference call following the release of robust Q3 results late last month, Zuckerberg said the company had lost revenue for the quarter.
“The changes at Apple are not only having a negative impact on our business, but also on millions of small businesses and an already difficult time for them and the economy,” he told analysts.
Facebook has been very critical of the iOS 14 changes since they were introduced a few months ago.
Sheryl Sandberg, Facebook’s chief operating officer, said the biggest impact on her came from iOS 14 changes that benefited Apple’s own advertising business.
“First, the accuracy of our ad targeting decreased, which increased the cost of increasing results for our advertisers. Second, it became more difficult to measure those results,” said Sandberg.