Apple’s app tracking policy reportedly cost nearly $ 10 billion on social media platforms

A study of Financial Times found that Snapchat, Facebook, Twitter and YouTube lost about $ 9.85 billion in revenue following Apple’s changes to their privacy practices. Last year, Apple announced the ATT (App Tracking Transparency) policy, which requires apps to ask permission to track users’ data. The policy went into effect in April, preventing apps from tracking users if they opt out.

Facebook especially criticized the initiative with a full-page newspaper ad, and thanks FT‘s report, now we know why business leaders were so frustrated. According to the report, Facebook lost the most money “in absolute numbers” compared to other social platforms due to its huge size. Meanwhile, Snap went “worst as a percentage of its business” because its advertising is mostly tied to smartphones, making sense for a product that doesn’t have a desktop version.

“Some of the platforms that were most affected – but especially Facebook – have to rebuild their machinery from scratch as a result of ATT,” said adtech consultant Eric Seufert FT. “My belief is that it takes at least a year to build new infrastructure. New tools and frameworks need to be developed from the ground up and thoroughly tested before being implemented for a large number of users. “

Apple’s new policy will force social platforms and other apps to get more creative with their advertising. Whether it means focusing on Android devices or investing in Apple’s advertising business – which almost broke its own rules by quietly collecting user data in the same way that third-party apps did – they’ll have to figure out another source of revenue that does not do it. involve tracking people on their iPhones.

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