The answer to this question turned out to be “do not track” 80% of the times.
Photo: Cult of Apple / Mac
According to an industry report, iOS privacy settings made in 2021 have already cost Facebook $8.1 billion, and the social-networking company’s losses will increase to $12.8 billion in 2022.
Forcing applications to ask permission before tracking their users’ online activity also hurts other companies. But nowhere near as much as Facebook.
iPhone App Tracking Transparency Costing Facebook Billions
In the spring of 2021, Apple added app tracking transparency to iOS and iPadOS. This put a pop-up in applications that let users ask whether they should not be tracked by advertisers because they used different iPhone/iPad apps.
ATT doesn’t prevent apps from tracking users. Instead, it gives users the option to block that tracking. Alternatively, they can let their apps track them.
According to a report by Lotem, 80% of Facebook users opted out of tracking. And Facebook’s ad revenue dropped 40%.
Facebook is known for its social network, but it is actually an advertising company. And its ads became less valuable as app tracking transparency made it much harder for the company to create personal profiles on its users.
Lotem wrote, “We have heard from many advertisers, especially small and independent marketers, that they were forced to reduce or eliminate their spending on Facebook because it was effective without the targeting and tracking capabilities inherent in legacy systems.” was not.”
Reducing ad revenue for Twitter, Snap and YouTube as well
Facebook isn’t the only company that makes money by selling targeted ads. Twitter, Snap and YouTube are also bringing in less revenue because of transparency in app tracking on the iPhone. Although much less than Facebook.
YouTube is expected to lose $3.4 billion between 2021 and 2022 after being denied the ability to track users without permission. Because of this, Twitter may suffer a loss of $ 535 million.
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