Apple announced in April that it would update the privacy policy of the operating system iOS, introducing the "Transparent Application Tracking" (ATT) function.
According to the new rules, apps need to ask for authorization from users before they can track their online behavior data using their mobile phones.
After the launch of this new policy, most users refused to use their data for tracking purposes for advertising. In just a few months, the impact on social media and e-commerce platforms has begun to appear.
Take social media Snapchat's parent company Snap as an example. Its third-quarter revenue was significantly lower than expected, and it is predicted that next quarter's revenue will also be lower than analysts' expectations of $1.36 billion.
On the day Snap released its earnings report (October 21), its stock price dropped by more than 20% after the market.
The performance was not as expected. Snap management pointed out two major reasons during the earnings call. One is that the new crown epidemic continues, the global supply chain is tight, and labor shortages make it difficult for companies to increase the supply of goods during the peak season of the second half of the year, thus restricting them The intention to place advertisements; the other is Apple’s operating system iOS changes to the data privacy policy.
Snap Chief Executive Evan Spiegel said that this iOS update "overturned many industry norms and advertiser behaviors based on IDFA over the past decade."
Facebook also claimed in its September blog that the iOS update has made it more difficult for them to help advertisers measure the effectiveness of advertising, and it has also made many small businesses that rely on accurate advertising marketing worse off the epidemic.
An e-commerce industry organization, eCommerceFuel, conducted a survey of 118 e-commerce operators in July this year and found that 62% said they had reduced their Facebook advertising spending since the iOS update.
Facebook has warned in its second quarter earnings report that as more people update iPhones and iPads, iOS privacy policy changes will further affect its third quarter revenue.
In the third-quarter financial report published last week, Facebook recorded revenue of US$29.01 billion, a year-on-year increase of 35%, slightly lower than outside expectations.
In addition, a report in the "Financial Times" on Monday (November 1) pointed out that due to Apple's adjustment of privacy policy, Snap, Facebook, Twitter and Youtube are expected to lose a total of US$9.85 billion in the second half of this year.
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Is Apple's move to protect the privacy of consumers, as it says, or does it have other intentions?
Has the Internet giant Google also been negatively affected?
As the public pays more and more attention to digital privacy, what long-term enlightenment does this incident have on the advertising business model that the Internet has grown up to today?
For detailed analysis, please read the 289th "Hong Kong 01" Electronic Weekly Newsletter (November 1, 2021) "
Apple's privacy policy is effective. Tracking advertising mode is no longer?
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Apple's privacy policy is effective tracking advertising model is no longer?