Apple’s iOS 14.5 software update is proving disastrous for online and social media ad tracking. Apple’s new anti-tracking feature allows users the option to be tracked, or not to be tracked, while using apps. Research studies are showing that the vast majority of users are opting out.
According to Flurry Analytics, only 11% of users worldwide and only 4% of users in the US are opting into app tracking based off a sample size of 5.3 million users. Opting out of app tracking eliminates the ability of companies like Facebook and Google to track your website and shopping activity, therefore eliminating recommended advertising.
Apple's anti-tracking feature, App Tracking Transparency (ATT), has had a significant impact on the mobile advertising industry since its introduction in April 2021.
Impact on Advertisers
ATT makes it more difficult for advertisers to track users across different apps and websites, which has made targeted advertising less effective. As a result, many advertisers have seen a decrease in their return on investment (ROI) for mobile advertising campaigns.
Impact on Publishers
ATT has also had a negative impact on publishers who rely on advertising revenue. Since advertisers are now spending less on targeted advertising, publishers are earning less money from ads. This has led to some publishers reducing their content output or even shutting down completely.
Impact on Users
ATT has been a positive development for users, as it gives them more control over their privacy. Users can now choose to opt in or out of tracking on a per-app basis. This means that users can see fewer irrelevant ads and have their personal data collected less often.
Overall Impact
ATT has been a disruptive force in the mobile advertising industry. It has made targeted advertising less effective, reduced revenue for publishers, and given users more control over their privacy.
Here are some specific examples of the impact of ATT:
- Meta, the parent company of Facebook, has estimated that ATT will cost it $10 billion in lost revenue in 2022.
- A study by AppsFlyer found that the average cost per install for mobile apps increased by 30% after ATT was introduced.
- A study by Adjust found that the average conversion rate for mobile ads decreased by 15% after ATT was introduced.
Despite the negative impact on advertisers and publishers, ATT is widely seen as a positive development for users. It has given users more control over their privacy and made it more difficult for companies to track their online activity.
It is still too early to say what the long-term impact of ATT will be on the mobile advertising industry. However, it is clear that ATT has already had a significant impact on the way that mobile ads are targeted and delivered.
