In-house advertising service is growing rapidly due to Apple's privacy-focused strategy

by Niels Epting

Apple has taken a strategy to protect user privacy by enabling `` App Tracking Transparency (ATT) '' from `` iOS14.5 '', which allows users to control tracking for advertising purposes. While many advertising companies and advertisers are affected by Apple's strategy, the financial newspaper Financial Times reported that Apple's in-house advertising service has greatly benefited.

Apple's privacy changes create windfall for its own advertising business | Financial Times
https://www.ft.com/content/074b881f-a931-4986-888e-2ac53e286b9d

Apple's Ad Business Surges After New Privacy Changes on Rivals: Report | iPhone in Canada Blog
https://www.iphoneincanada.ca/news/apples-ad-business-surges-after-new-privacy-changes-on-rivals-report/

The result of Apple's new privacy policy? More money for Apple.
https://mashable.com/article/apple-privacy-policy-advertising-increase

Apple assigns an advertising identifier called 'IDFA' to iOS devices, and app developers and advertisers can use IDFA to track user behavior and use it for advertising display. ATT is a privacy protection function that requires prior consent from users in order for advertisers to use the IDFA.Since many users refused to be tracked by the introduction of ATT, Facebook and advertisers, which are engaged in advertising business, It is reported that he was hit.

Facebook and advertisers panicked by Apple's privacy enhancement, how much was the actual impact? -GIGAZINE

Businesses that typically buy advertising through third-party platforms can use the IDFA to quickly learn the effectiveness of their advertising campaigns and more. However, if the user refuses to use IDFA through ATT, the campaign measurement results will be received after 72 hours, and the accuracy of the information that can be obtained will be reduced, so the cost effectiveness of advertising has decreased significantly. reported.

However, these restrictions apply only to third parties and do not apply to Apple's in-house advertising services. Therefore, by introducing ATT for privacy protection, Apple will be able to perform detailed analysis of advertisements and send real-time data, which is impossible for rival advertising companies, and only Apple's own advertising service will benefit. It was pointed out that it might get

Apple can boost its advertising service with enhanced privacy - GIGAZINE

The Financial Times reported that Apple's search-linked advertising ' Search Ads ' in the App Store has greatly benefited from ATT. Search Ads is an advertising service that displays the set app advertisement at the top of the search results for keywords searched in the App Store, and is characterized by the fact that only one advertisement is displayed per search.

According to a survey by branch , a mobile business analysis company, at the time of the survey, Search Ads accounted for 58% of all iPhone app downloads through clicks, and tripled in the six months since the introduction of ATT. matter. Along with this, Search Ads revenue is expected to reach $5 billion (approximately ¥570 billion) in fiscal 2021, and is likely to reach $20 billion (approximately ¥2.28 trillion) within the next three years. It is expected that there will be.

Apple has told Financial Times that ATT is only intended to protect users and not to strengthen Apple's own advantage. On the other hand, Apple-related media iPhone in Canada Blog pointed out that while Apple has regulated third-party advertising companies with ATT, they have not demonstrated that their advertising practices comply with their own policies. .