In particular, Apple’s rival Facebook has received numerous warnings that Apple’s plan to give users more control over privacy would cause a proverbial apple cartel in the global economy. The first reports show that they were right. The change in privacy policy has already caused such a change that advertisers will turn away from Apple and land on Android.

Apple’s bold policy

Apple CEO Tim Cook said three years ago: “Privacy is a fundamental human right. It has always been a strong part of Apple’s experience, but now it looks like Apple is banking on it to show how it differs from its competition.

Apple only sells ads in a few of its apps, and it doesn’t receive a revenue share from third-party iOS apps. Its competitors – Facebook and Google – are much more dependent on advertising revenue in their business models.

Apple announced at WWDC 2020 that iOS 14 will bring a change to data tracking. This would force iOS apps to reveal the information they hold to their users and allow users to opt out. He finally put it to play this spring with iOS 14.5.

Facebook has been very vocal about Apple’s plan. In December, That said Apple intended to “force companies to turn to subscriptions and other in-app payments to generate revenue, which means Apple will take advantage of it and many free services will have to start charging or exiting the market.”

But Facebook also claimed to care about the little guy, not himself. Facebook pointed out that Apple’s “application tracking transparency” hurt small businesses already suffering from the pandemic. The social media giant said one of its studies showed that small businesses could see a 60% loss in website sales due to Apple’s new functionality.

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The results show that advertisers work more with Android and less with Apple

Apple’s new feature requires apps to ask users for permission to track them. As an iOS user, I can tell you that I am unsubscribing. Some apps I trust and think my information can help allow me to follow, but with most others I’ve refused.

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So I leave tracking entirely, but I disable individual apps. By choosing privacy for developers or privacy, I choose my privacy and I’m not the only one. According to advertising measurement company Branch Metric Inc., less than 33% of them choose.

This has caused prices for iOS ads to fall and prices for Android ads to rise. Advertisers have complained that within three months of Apple’s Privacy Policy being active, they have lost much of the data that made iOS ads effective. Without efficiency, it is difficult to justify the high cost of advertising.

When advertisers buy ads from Apple, it is much less targeted. According to advertising companies, the tools Facebook uses in social media products are not as effective as iOS users refuse to share their information.

The literal and figurative million-dollar question is how this will affect the business model of the technology world. Advertisers are moving to Android, but Apple is not dependent on earning ads. However, third-party application developers don’t seem to want users to know about their privacy. Does this print fewer developers to work with Apple? Or is the result simply a change in the technology company’s business model?

Read about ads that Facebook posted in newspapers and enticed Apple about its commitment to privacy, and changes to iOS 15 that include more privacy.

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