The Impact of App Tracking Transparency on Mobile Advertising
Apple’s privacy regulations under the App Tracking Transparency (ATT) framework on iOS and their impact are becoming increasingly clear.
Massive Revenue Losses for Social Media
After the introduction of the final user opt-in for tracking in April 2021, the mobile advertising business was significantly disrupted, leading to massive revenue losses. According to a report by the Financial Times, Snap Inc., Facebook, Twitter, and YouTube together lost nearly $10 billion in revenue. Apple’s own ad business, on the other hand, received a significant boost from the changes.
Challenges for Social Media
Some social media companies, led by Snap Inc., need to restructure their mobile advertising business to offset the losses. Apple’s privacy policy has had a major impact on the business, which was also reflected in the stock prices.
Industry-wide Impact
The impact of App Tracking Transparency is not limited to Snap Inc., but also affects other heavyweights such as Facebook, YouTube, and Twitter. In total, 9.85 billion US dollars were lost by the big social media companies. A quick solution is not in sight, and the entire industry is facing the challenge of finding creative and transparent ways to meet privacy requirements.
Consequences for Advertisers
Not only the big social media companies are affected by the impact, but also the many advertisers are suffering from the restrictions of Apple. The difficulties in reaching potential customers are leading to rising advertising and conversion costs.
Our Solutions for Your Success
We closely monitor the developments in connection with App Tracking Transparency and adapt your marketing strategies to the current challenges. Our offer includes solutions in the areas of web design, webshops and online advertising, to ensure that you are successful even in this changing landscape. Stay up-to-date on App Tracking Transparency and the resulting impact on the advertising world.
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Recommendations for Advertisers
Here are some recommendations for advertisers who are affected by the impact of App Tracking Transparency:
- Focus on first-party data: First-party data is data that you collect directly from your customers, such as their name, email address, or purchase history. This data is much more valuable than third-party data, which is data that you collect from other companies.
- Use contextual targeting: Contextual targeting allows you to show ads to people who are interested in the content that they are currently viewing. This is a more effective way to reach potential customers than targeting them based on their demographics or interests.
- Use retargeting: Retargeting allows you to show ads to people who have already visited your website or app. This is a great way to remind people about your business and encourage them to return.
By following these recommendations, you can continue to be successful in mobile advertising, even in the face of the challenges posed by App Tracking Transparency.
