Skip to main content

Apple's App Tracking Transparency sealing Meta's fate

[PLACEHOLDER]

If you have been following the recent news on Meta (formerly Facebook) you may have read that Meta recently projected their ad revenue will be cut by a staggering $10 billion in 2022 due to Apple’s new App Tracking Transparency feature (also known as ATT). This has resulted in Meta’s stock to plummet by over 20%.

Photo by julien Tromeur on Unsplash - modified by Beolle

So what is Apple’s ATT and how does it impact ad revenue?

Apple has been releasing multiple privacy features for the last few years. This included Apple’s Mail Privacy Protection and Apple’s App Tracking Transparency feature. You can learn more about Apple’s Mail Privacy Protection in our earlier post by clicking here

Apple’s App Tracking Transparency (ATT) was launched in iOS 14.5 and iPadOS 14.5 where it prompted users to select if they wanted the app to track their activities across other apps on the device. The prompt is displayed when the user opens an app like Facebook or Instagram for the first time on iOS 14.5 or higher. When prompted if user selects not to be tracked then the user’s activities across other apps cannot be tracked thus significantly lowering the efficacy of the ads presented to the user by ad platforms like Meta. This in turn reduces the conversion of the ads resulting in reduced revenue for the ad platform. 

Given that Meta relies heavily on ad revenues from their portfolio of apps on mobile devices ATT seems to be having a disproportionate impact on Meta and similar social media platforms. Post Meta’s earnings call similar social media platforms like Snapchat, Twitter and Pinterest also saw a significant dent in their stock price.

This also exposed the influence of Apple on companies like Meta, Snap, Twitter and Pinterest due to the sheer volume of apple devices on which these companies rely on their advertising revenue.

What do you think? How would Meta adapt to these privacy changes in the coming months?

References:

Trending posts

CRM - Overview Diagram

CRM is an interesting topic. I had the opportunity to work for a company where I participated in a project for the integration of: Microsoft Dynamics GP Microsoft Dynamics CRM Sharepoint (for the intranet)     I’ve also worked in the Digital Agency industry, involved in Web App solutions, where CRM strategies play an important role. For a client (Eg: An online company in retail selling shoes) would be beneficial to find a Shop (Digital Agency) that understands CRM from the strategic point of view and also offers services using software tools that facilitate the finding of insights, track consumer behaviors and helps to provide a personalize experience to the consumer; bringing value to the business. There are CRM solution providers out there that a Shop can partner with. To name a couple: Salesforce SDL There could also be a case where a Shop can create their own custom solution that could have as their center piece a BI system, created as a produc

Gaming trends: What to expect

Gaming continues with an accelerated evolution and significant business growth. The incredible virtual worlds are receiving thousands of real-time players, becoming another avenue for networking, as well as entertainment. This is just impossible to ignore. The gaming industry is one of the most dynamic and innovative sectors, constantly evolving and adapting to new technologies, consumer preferences, and market opportunities. Photo by Mikhail Nilov via Pexels   Newzoo forecast the game market will grow to $217.9 billion in 2023. Newzoo 2020 Global Game Market Cloud and gaming There was a time, not too long ago, when you would buy your games and play them by inserting them into your console or computer. As more gamers demand access to high-quality games on any device, anywhere, anytime, cloud gaming will become a mainstream option for delivering games over the internet. Games are now becoming available via subscription model. An example of this is the Microsoft Xbox game pass and Xbox L

Analytics and Attribution models

The customer journey is packed with multiple touchpoints, making it challenging to determine which of these “moments” (actions taken by the user) have played the most significant role in the conversion of the customer.  Photo by Mikael Blomkvist from Pexels Model attribution provides insights into how users interacts with your web and mobile apps. The decision-makers leverage the insights to understand what marketing efforts are driving “value”, allowing them to focus on the channels that provide the best Return on Investment (ROI).  There are several attribution models that can be used to assign credit. We will go through some of those in this article. Customer Journey - Beolle.com First touch attribution It is an awareness focus, being an introduction to the brand. This model gives the conversion credit to the first point of contact (i.e. a video or a social link).  Last touch attribution It is a model that gives the conversion credit entirely to the final touchpoint from which a lea

Your platform as a positive force in the world

If you are managing a platform, even if it is small, then you are leveraging one of the elements and popular channels used to build digital communities. These platforms, and channels, can come in the shape of websites, blogs, mobile apps, podcasts, vlogs, social media, or a combination of the ones mentioned. Photo by Tatiana Syrikova from Pexels   There are many reasons for building a community, such as sharing knowledge, promoting businesses, branding, the need for engaging with others, etc. However as Spiderman’s Uncle Ben said: “With great power comes great responsibility.” If you like to build better communities with more collaboration and less silos then how would you do it? How can communities come together to drive a “ positive force ”? The current world is mired in conflicts. How long are we willing to go on in such disarray? All the continents are in some kind of “a demonstration of partisanship, intolerance and selfishness”. There are nations in the Americas, Africa, Middl

This blog uses cookies to improve your browsing experience. Simple analytics might be in place for pageviews purposes. They are harmless and never personally identify you.

Agreed