Apple could boost its own advertising service with privacy enhancements



Apple has enabled the privacy enhancement function ``

App Tracking Transparency (ATT) '' from iOS 14.5, but it is believed that this may have a big impact on the existing advertising system. Many advertising companies and app developers are concerned that ATT will reduce revenue, but it is reported that Apple's advertising platform may gain an advantage over rivals with ATT.

Apple's Privacy Changes Are Poised to Boost Its Ad Products - WSJ
https://www.wsj.com/articles/apples-privacy-changes-are-poised-to-boost-its-ad-products-11619485863

Apple ad sales now get an unfair advantage, say ad execs - 9to5Mac
https://9to5mac.com/2021/04/27/apple-ad-sales-unfair-advantage/

In 2020, Apple announced that it will require user permission to use advertising identifiers and IDFAs in `` targeted advertising '' that displays advertisements based on user interests, interests, and behavior. Since IDFA can be used to extensively track user behavior and identify interests, it is believed that advertising effectiveness will be weakened if users refuse to use IDFA. For this reason, many companies expressed concern about the announcement.

Despite the backlash of many companies, including Facebook, on April 27, 2021, the above functions were finally enabled with the announcement of iOS 14.5.

'iOS 14.5' is released, finally iPhone's Face ID can be used while wearing a mask - GIGAZINE



This feature, called ATT, is intended for privacy protection. However, the Wall Street Journal reports that enabling ATT could give Apple's advertising business an edge over its rivals.

According to a person familiar with Apple's advertising system, if users opt out of the IDFA in ATT, companies that buy ads through third-party platforms will only receive insights into their campaigns after three days. matter. In addition, it seems that the information received will only be aggregated such as 'the total number of users who took action after displaying the ad'.

Advertisers who purchase Apple-provided inventory, on the other hand, will receive more information about user behavior. Specifically, sources say that it is possible to know in real time, such as the type of advertisements that users have seen and the keywords that displayed the advertisements.



An Apple spokesperson has denied the idea that Apple is trying to boost the dominance of its own platforms, and restricts ads purchased on third-party platforms because those platforms are Apple's It said it was to circumvent policies and attempt to track users. Apple's theory is that because Apple's advertising platform targets by large groups, it doesn't track you like a third party does and protects your privacy.

The overseas news media MSPoweruser also mentions this 'targeting for each large group'.

Apple's advertising policy states that Apple does not link 'data collected from apps and devices' with 'data collected from third parties for the purposes of advertising measurement.' On the other hand, account information, download history, purchase history, subscription history, and advertising information delivered by Apple's advertising platform are used for targeted advertising based on 'segments' consisting of more than 5,000 users. is stated.

Apple Advertising & Privacy – Apple Support
https://support.apple.com/en-gb/HT205223



MSPoweruser points out that Apple's 'segment-based targeting' is similar to Google's announced and condemned advertising API ' FLoC '. There is an idea that collecting user information and using it for advertising distribution, even in large group units, leads to privacy violations and discrimination.

Apple's advertising business consists primarily of app store search ads, which are largely unaffected by ATT. Apple is also planning to expand its advertising offerings, and is said to be testing new ad slots available in the App Store's 'Recommended' category. Increasing the ad space will increase Apple's advertising revenue, but even if the ad space does not increase, if the demand for the App Store's ad space increases due to the change in the privacy policy, the ad unit price is expected to rise.

Apple is being investigated for alleged antitrust violations, but it is difficult to argue that the above privacy policy changes violate antitrust laws. This is because it is the user's choice whether or not tracking is allowed.

in Software, Posted by darkhorse_log