More than 70% of iPhone users reject ATT… Advertising industry panic rumors

In iOS and iPadOS 14.5, Apple introduced App Tracking Transparency (ATT), a structure that requires apps to obtain explicit permission to track users across other webs and apps, making it easier for users to opt out of tracking. .

But with only 25% of users allowed to be tracked, rumors have been reported that Facebook and the advertising industry are panicking. According to reports, this effect is affecting Facebook advertisers. Facebook says fewer users can be tracked, so it won’t be able to provide advertisers with indicators of whether their ads are working effectively.

A company that deploys Facebook advertisements on behalf of clients says that Facebook cannot accurately determine client sales and it is difficult to analyze which advertisements are effective. Losing this data would also affect Facebook’s ability to sell products to potential customers, making retargeting difficult.

According to research firm Branch data, 75% of iPhone users are running iOS 14.5 or later and are eligible to opt out of ATT. Of these users, 25% said they clicked permission to track when prompted.

Facebook said it is developing new advertising features that require less data to measure advertising effectiveness to compensate for the data lost by ATT. It is also said that a method of delivering advertisements based on data stored on the user’s device is being considered. That way, even if you don’t have access to your Facebook data, you don’t need to get user consent.

Facebook also denounced Apple’s policies as undermining companies’ ability to use their advertising budgets efficiently and effectively, and that the restrictions were imposed by Apple for its own benefit.

After Apple introduced ATT on iPhone and iPad, there were reports that advertising costs are shifting from iOS to Android, and that the increase in Android ads outweighs the decline in iOS. However, the report also introduces an estimate that if 20% of users consent to tracking, Facebook’s revenue is likely to decrease by 7%, and if it is 10%, it is likely to decrease by 13.6%. Related information can be found here.