Apple’s sweeping changes to privacy rules are reportedly negatively impacting some small businesses.
Introduced in iOS 14.5, the company’s App Tracking Transparency (ATT) feature gave users the ability to opt-out of app tracking for third-party apps and websites, preventing those apps from serving targeted ads to customers.
This caused a 13% drop in revenue in the second quarter of 2022 for companies that relied on these targeted mobile ads to acquire new customers, according to data from software company Varos that surveyed more than 1,300 companies.
How does the feature work?
Before the feature was introduced, app developers and publishers were given access to large amounts of user data.
While this can be used for legitimate purposes to make apps work better, such as by providing location-based suggestions, publishers and advertisers could sell user data to third parties.
However, the introduction of ATT has not been without controversy. Apple is currently facing an antitrust lawsuit in Germany, with Germany’s Federal Cartel Office, the Bundeskartellamt, investigating whether the introduction of the new rules is self-preferred.
However, a report commissioned by Apple (opens in new tab) (perhaps unsurprisingly) found that it hasn’t gotten any windfall under the new rules.
The report found that “Apple is unlikely to have benefited significantly from ATT because Apple Search Ads is a small part of the overall mobile advertising market and because displaced ad spend could go to many other companies that effectively use first-party advertising. data for advertisements.”
Apple’s changes to the way its products share data may have had a greater impact on the industry as a whole.
Google has said it will remove third-party cookies from Chrome by the end of 2023.
Interested in changing your settings?
To change how your iPhone keeps track of your data, go to the “Settings” app, then tap “Privacy”.
You can then go to ‘Tracking’, which is located at the top of the screen, and you can then enable or disable tracking for each of your apps individually.
Through Financial times (opens in new tab)