An Apple change caused Internet companies to “evaporate” $ 16 billion

What has Apple changed in its privacy policy?

It’s been about a year since Apple first released iOS 14.5. In addition to features like unlocking iPhone with Apple Watch while wearing a mask, the company also introduced its controversial app tracking transparency (ATT) feature. A feature that is appreciated by many users, but many tech giants are having problems.

Apple’s new privacy policy was implemented a year ago with the slogan “transparency” in tracking applications. When iOS 14.5 was released in April 2021, a feature was included that gave users more control over the ads displayed, influencing the actions of advertisers. In view of that change, apps must ask users for consent for the app to use user data to display targeted advertisements. Following the changes introduced in April 2021, by the end of that year, the cut in ad revenue from Facebook, Snapchat, YouTube, and Twitter was reported to be nearly $9.85 billion.

At the time, Snap Inc. CEO Evan Spiegel. said the changes were “certainly a disappointing setback,” adding that Apple’s privacy policy has “uplifted” the industry. At the same time, he recognizes that there are positive changes to protect consumer privacy, but that app developers will need time to adapt.

Last year, Meta was one of the tech companies that publicly expressed their displeasure with the changes. They say developers will lose 50% or more of their revenue from the new rules. Mark Zuckerberg, the group’s CEO, notes that Apple is a competitor of Facebook and argues that it is for this reason that they have taken this measure. “For the sake of competition” and not “to help people,” according to the social network’s founder.

Meta warned late last year that Apple’s privacy shift would create a windfall that would cost $10 billion by 2022. The company, like other tech platforms, has and is working to introduce new privacy optimization and measurement tools to mitigate the impact of this Apple feature, although any new tools will take some time for advertisers to like. suspect.

More security means less revenue

More than a year has passed since Apple revised its privacy policy from the App Store, the change continues to take its toll, and a new analysis indicates that the revenue of platforms like Meta, YouTube, Snap and Twitter will be hit by nearly $16 billion this year. That continues to be the result of this change.

A new assessment from knowledge management company Lotame, shared entirely with Insider, estimates that Meta (formerly Facebook) will be the company most impacted by these revisions in 2022. shows that the Mark Zuckerberg-led company will lose about 9.7% of its earnings to Apple this year, or about $12.8 billion. The pressure will be similar on Snapchat, which will lose 9.6% of its revenue in 2022, or about $546 million.

The goal is not the only one

The truth is that Meta and Snapchat won’t be the only ones continuing to suffer from Apple’s policy changes. For example, YouTube would have a “modest impact” of 6.5% on annual revenue ($2.2 billion).

For its part, the privacy update will affect Twitter’s 2022 revenue of $323 million, or 5.4% of the company’s revenue.

This trend, seen since the second half of last year, is far from over. Analysts have predicted that Apple could further modify the advertising landscape with its new privacy options, where giants like Meta and others will continue to suffer the consequences in the future. near future.

Spokespersons for Apple, Meta, Alphabet, Twitter, and Snap all declined to comment or did not immediately respond to requests for comment when this report was published.

Experts predict that Apple will likely disrupt the advertising landscape by beefing up its privacy tools. Meanwhile, platforms are most likely to be affected by supply chain disruptions and various macroeconomic impacts. Plus, tech giants are relying heavily on e-commerce as an approach to driving total sales entirely within their own platforms, without relying on third parties. to measure. Meanwhile, e-commerce is also preparing for additional supervisory modifications, from Google’s move to remove cookies in Chrome, to the world’s approach to new privacy rules.

Lotame’s head of operations, Mike Woosley, said: “As it progresses, the effects of this particular change are likely to be more subtle and difficult to isolate and may begin to stir up. with different modifications, this can happen with the accessibility to additional methods of open communication previously”. Lotame made a similar assessment last October and estimated that Meta, YouTube, Snap and Twitter lost $9.85 billion in earnings due to Apple’s privacy amendments in the second half of 2021. Monetary Rights reported.