 |
| Apple causes social media platforms to lose about $10 billion |
Apple's decision to change the iPhone's privacy settings led to almost $9.85 billion in revenue from Snapchat, Facebook, Twitter and YouTube in the second half of this year, as their promotional activities were affected by the new rules.
These numbers are based on a survey conducted by the Financial Times. Apple introduced an App Tracking Transparency Policy in April, which requires apps to request permission before tracking user behavior in order to serve them personalized ads.
Most users opt out so that advertisers don't know how to target them. Advertisers responded by reducing their spending on Snapchat, Facebook, Twitter and YouTube and moving their budgets elsewhere.
Advertisers target Android phone users and Apple's increased advertising efforts. Facebook COO Sheryl Sandberg said the changes make targeting our ads less accurate. This increases the cost of presenting results to our advertisers and makes these results difficult to measure.
Advertising technology company Lotame estimates that these four tech platforms lost 12% of their revenue, or $9.85 billion, in the third and fourth quarters.
Given its focus on smartphones, Snapchat has the worst performer in its business. Although Facebook has lost more in absolute terms due to its size.
It is a mistake to think that advertising spend will decrease or even change because marketers spend money where they see results.
While the initial results look good, Snapchat chief commercial officer Jeremy Gorman said when the company announced its results on October 21 that Apple's new ad metrics system cannot be relied upon as a time-independent measurement tool. .
The next day, Snapchat's stock price fell 27% and its market value evaporated by more than $30 billion.
Apple's changes are reflected in the platform
It is estimated that Facebook alone could have a void of $8.3 billion in these two quarters.
He believes the decline in revenue could continue in the next few quarters as the ad group rebuilds using a privacy-driven model.
David Weiner, Facebook's chief financial officer, described the impact of Apple's policies as "more difficult and disruptive than expected."
In contrast, Alphabet and Twitter had a greater impact on these changes, and all indicated that the results of the change made by Apple were moderate.
On Twitter, ad sales rose 41% last quarter. The company said it was less affected by the iPhone maker's guidelines. In fact, its advertising is based more on context and brand than on tracking consumers' mobile habits.
Alphabet has enough user data that you don't need to track users through third-party applications. YouTube is an exception, but Ruth Porat, Alphabet's chief financial officer, said the impact has been limited.
Alphabet has benefited from advertisers switching to Android phones. Blocking iPhone access means marketers are spending more on Android.