Advertisers are reacting to Apple’s introduction of the ATT framework by changing their spending strategy.
In April, Apple introduced the Tracking Transparency App to allow users to maintain their online privacy. At first it was thought that the feature would hit marketers because it could limit how they can target users with advertising. However, a few months after its introduction, it appears that advertisers are also changing the way they spend their funds.
As reported by the Wall Street Journal, following the launch of the App Tracking Transparency , which requires all apps on iPhone and iPad to ask for user consent before tracking their activity on other apps, advertisers have begun to reduce their spending. on the Apple platform.
According to early data from ad measurement company Branch Metrics Inc, seen by The Journal, fewer than 33% of iOS users have allowed apps to track them. The remaining 67% of iOS users chose not to allow apps to track their activity. As a result, the amount of advertisers spend on Apple’s mobile platform decreased by about a third between June 1 and July 1, while spending on the Android platform increased by more than 10% in the same month.
The lack of targeting caused by the introduction of ATT is believed to underpin the change, with less granular data being provided to advertisers about consumers they wish to target. According to Branch Metrics, less than a third of iOS users have enabled tracking, significantly limiting the number of devices that apps can track.
A Facebook spokesperson, a major critic of the feature, said that “third-party data tends to be unreliable and unrepresentative of our business,” meaning it is more difficult to advertise using alternative data sources rather than directly tracking users.
According to some experts familiar with Facebook’s operations, the majority of users in the world are using Android, which means that the social network could benefit from the higher prices of Android platforms.