Apple’s New Advertising Rules Impact Competitors’ Revenue

With the release of iOS 14.5, updated rules came into effect, according to which all applications from the App Store must ask users for permission to collect data. Even at the time of the announcement, many large companies criticized such an innovation, stating that it would negatively affect the advertising business. Facebook was the most dissatisfied with the changes.

Judging by the latest reports, the fears of some major players have come true. According to the Financial Times journalists, the need to obtain special permission from users of apple devices to collect a number of personal data has led to the fact that Snap, Facebook, Twitter and YouTube have lost a significant part of the profits. Lotame experts note that in the third and fourth quarters, four technology companies missed about $ 9.85 billion in revenue.

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In absolute terms, Facebook has felt the biggest change Apple has made. For a long time, the social network has been a fairly effective tool for attracting new customers. However, the changed rules have led to higher costs for advertisers. As a result, many began to look for cheaper tools to promote their products. Now TikTok is showing itself well in this regard.

In addition to Facebook, Snap also faced some problems. In the third quarter, the company’s revenue was $1.07 billion. But Alphabet and Twitter suffered the least from the innovation. The fact that these companies’ ads are based on context and branding, rather than tracking users’ mobile habits, played a role.

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A source: Financial Times

Written by Shubham

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