Social media platforms – Snapchat, Facebook, Twitter and YouTube have lost an estimated $ 9.85 billion in revenue as a result of changes Apple made to its privacy practices, a Financial Times investigation found.
Ad technology company Lotame estimated that the four social media platforms lost 12% of their revenue in the third and fourth quarters. This development comes after the new iOS App Store policy requires apps to request permission to track user data on other apps and websites.
The policy went into effect in April, prohibiting apps from tracking users if they opt out. In a statement, Apple told App Store developers that “unless you (app developers) are given user permission to enable tracking, the value of the advertising id of the app. device will be completely zero and you will not be able to track them.
Sheryl Sandberg, COO of Facebook, said the biggest impact for them has come from changes to iOS 14 that have benefited Apple’s own advertising business. âOne is that the accuracy of our ad targeting has decreased, which has increased the cost of results for our advertisers. And the other is that measuring these results has become more difficult.
Earlier, a report from The Information found that this new policy will hurt less than 5% of Facebook’s $ 84 billion in annual ad revenue. âSome of the most impacted platforms – but especially Facebook – have to rebuild their machines from scratch as a result of ATT,â Eric Seufert, adtech consultant, told the Financial Times.