Apple in iOS 14.5 made it possible for users to opt out of being tracked by ad platforms for device owner data.
This data is impersonal, but it allows advertising platforms to roughly imagine what kind of person you are, what you are interested in, where you go. Although the data does not reveal your name and passport number, it allows you to find out a lot about you. This information leads to personalized ads. And, starting with iOS 14.5, you can prevent apps from tracking this information.
The innovation is well described in the company’s video:
Valya in one of the videos said that Apple will change the advertising market:
And it turned out that Valya was right! Fresh longread The wall street journal talks about exactly this. According to the publication, ad companies are now spending 30% less money on their campaigns targeting iOS users than before. The reason is simple: According to Branch Metrics Inc, less than 33% of users have agreed to be tracked by applications. And this data is only for one month – from June 1 to July 1, 2021.
According to marketers and ad technology companies, ad buyers have spent less money on iOS ads in recent months than before. Ad agencies claim a lack of user data to support Facebook Inc.’s powerful targeting toolkit. reduces their effectiveness and makes them less attractive to some advertisers.
In this case, Apple does not lose anything: the company did not receive income from advertising in third-party applications, so the changes will not affect it in any way.
Another interesting result was that advertising aimed at users of Android devices increased in price by 10% in the same month. The Wall Street Journal cites Tinuiti’s figures: its clients increased their ad spend for Android users from 46% to 64% year on year. But for iOS users, ad money fell from 42% to 25%.
One of the leading critics of this iOS 14.5 innovation is Facebook. The company hasn’t disclosed how much of its $ 70 billion in revenue comes from ad campaigns, but it’s already clear that Facebook Audience Network’s revenue has dropped dramatically as a result. At least that’s what Tinuiti is reporting.
In response, Facebook raises an important question: the company’s billion-dollar revenues will not be affected much, but it will be more difficult for small developers. They are used to targeting personalized ads, but starting with iOS 14.5 they won’t be able to use that data.