Almost a year ago, Apple released iOS 14.5. Alongside the ability to unlock the iPhone with an Apple Watch while wearing a mask and new emojis, the company also brought its controversial App Tracking Transparency feature to life. Twelve months after, a new report indicates how ATT could impact revenue from Facebook, Twitter, Snap, and YouTube in 2022.
According to a report by Lotame, big tech platforms’ revenue could drop by almost $16 billion due to Apple’s App Tracking Transparency. For those who don’t remember, ATT requires that applications ask permission from users before tracking them across other apps and websites.
For example, when you open the Facebook app, you’ll see a prompt that says the app would like to track you across other apps and services. There will be two options from which to choose: “Ask App not to Track” or “Allow.”
Talking about Facebook, Lotame’s report shows that Zuckerberg’s company will take the biggest hit as the privacy changes will cost it $12.8 billion in revenue.
“The effects of these changes on these companies are hard to isolate because all four players are still growing extremely strongly, still taking share from the last bastions of traditional media and gaining share in digital media as privacy regulations make it harder and harder for independent publishers and technologies to execute,” said Mike Woosley, Chief Operating Officer at Lotame. “To add to the complexity, the pandemic has introduced volatile and unpredictable gyrations in the pacing of media spend.”
As you can see in the data above, Snapchat, Facebook, Twitter, and YouTube still have a massive opportunity to keep growing, although Apple’s App Tracking Transparency will impact their revenue. It’s impressive that from the $16 billion loss, Facebook will be hit with 81% of that.
“As we move into the back half of 2022, we will no longer be talking about the impact the Identifier for Advertisers changes had on these players – by then 18 months hence,” added Woosley. “First, we may be moving into a recession. Next, there are other shocks affecting the industry. Third, we’ll be thinking and talking about the next wave of changes and the likely impact on these players (cookies, IP addresses, and GAIDs). Finally, the companies themselves will be telling the market that workarounds and adaptations that they have advanced have cauterized the impact on the business.”
The full findings can be seen here. What do you think about Apple’s App Tracking Transparency after a year, do you think it’s been helping your experience online? Share your thoughts in the comment section below.
FTC: We use income earning auto affiliate links. More.