Apple is taking a strategy to protect user privacy by enabling App Tracking Transparency (ATT) in iOS 14.5, which can be directly controlled by users for advertising purposes. While many advertising companies and advertisers are affected by Apple’s strategy, reports have emerged that Apple’s own advertising service is helping.
Apple assigns an advertising identifier called IDFA to iOS devices, and app developers and advertisers can use IDFA to track user behavior and help display ads. ATT is a personal information protection function that requires advertisers to obtain prior consent from users in order to use IDFA, and it is reported that Facebook and advertisers, which are running the advertising business, have been hit hard as most users refuse to be tracked with the introduction of ATT.
Companies that usually purchase advertisements through third-party platforms can use IDFA to quickly know the effectiveness of advertising campaigns, etc. However, it is reported that when a user refuses to use IDFA through ATT, it takes 72 hours to receive the campaign measurement result, which reduces the accuracy of the provided information, and thus the effectiveness against advertising costs has been significantly reduced.
However, this limitation only applies to third parties and does not apply to Apple’s own advertising services. Therefore, by introducing ATT under the protection of personal information, Apple is able to perform detailed analysis and real-time data transmission of advertisements that are not available in competitive advertising companies.
According to the report, Search Ads, which are search-linked advertisements distributed by Apple in the App Store, are receiving great ATT benefits. Search Ad is an advertisement service that displays application advertisements set for keywords found in the App Store at the top of the search results.
According to a study by mobile analytics company Branch, the proportion of search ads among all downloads through iPhone app clicks at the time of the survey reached 58%, and that it has tripled in six months after ATT. As a result, searchad revenue is expected to reach $5 billion in 2021, and is expected to reach $20 billion within the next three years.
Apple is arguing that the purpose of ATT is to protect users and not to strengthen Apple’s own dominance. Meanwhile, other reports point out that while Apple regulates third-party advertising companies in ATT, it does not prove that its advertising practices are compliant with its policies. Related information can be found here.