In-house advertising services are growing rapidly due to Apple's privacy-focused strategy

by Niels Epting

Apple has a strategy to protect user privacy by enabling 'App Tracking Transparency (ATT) ' from iOS 14.5, which allows users to control tracking for advertising purposes. As Apple's strategy affects many advertising companies and advertisers, Apple's in-house advertising services are benefiting significantly, the Financial Times reported.

Apple's privacy changes create windfall for its own advertising business | Financial Times

Apple's Ad Business Surges After New Privacy Changes on Rivals: Report | iPhone in Canada Blog

The result of Apple's new privacy policy? More money for Apple.

Apple has assigned an ad identifier called 'IDFA' to iOS devices, and app developers and advertisers can use IDFA to track user behavior and use it to display ads. ATT is a privacy protection function that requires the prior consent of users in order for advertisers to use IDFA, and since many users refused to track due to the introduction of ATT, Facebook and advertisers who develop advertising business are large. It is reported that he was hit.

What was the real impact of Apple's increased privacy panicking Facebook and advertisers? --GIGAZINE

Companies that purchase ads through third-party platforms can typically use IDFA to quickly see the effectiveness of advertising campaigns and the like. However, if the user refuses to use IDFA through ATT, the measurement result of the campaign will be received 72 hours later and the accuracy of the available information will be reduced, so the cost effectiveness of the advertisement will be significantly reduced. It has been reported.

However, these restrictions apply only to third parties and do not apply to Apple's in-house advertising services. Therefore, by introducing ATT with the aim of protecting privacy, Apple will be able to perform detailed analysis of advertisements and real-time data transmission that are 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 services with enhanced privacy-GIGAZINE

The Financial Times reported that Apple's search-linked ads, Search Ads , in the App Store are benefiting significantly from ATT. Search Ads is an advertising service in which the ads of the set app are displayed at the top of the search results for the keywords searched in the App Store, and the feature is that only one ad is displayed for each search.

According to a survey by mobile business analytics company Branch , at the time of the survey, Search Ads accounted for 58% of all iPhone app click downloads, which tripled in the six months since the introduction of ATT. matter. As a result, Search Ads revenue in 2021 is expected to reach $ 5 billion, which could reach $ 20 billion within the next three years. Expected to be.

Apple argues to the Financial times that ATT is solely about protecting users and not strengthening Apple's own advantage. Meanwhile, Apple-related media iPhone in Canada Blog pointed out that while Apple regulated third-party advertising companies with ATT, it did not demonstrate that their advertising practices were in compliance with its own policies. ..

in Mobile,   Web Service, Posted by log1h_ik