Ad subtraction
Apple’s tracking rule boo$ts rivals
Advertisers have begun shifting their spending patterns in the months since Apple began requiring apps to gain iPhone and iPad users’ permission to track them.
After the change took effect in April, many users of Tim Cook-led Apple’s iOS operating system have received a high volume of prompts from apps asking permission to track them — requests that most have declined. Less than 33 percent of iOS users opt in to tracking, according to ad-measurement firm Branch Metrics.
As a result, the prices for mobile ads directed at iOS users have fallen, while ad prices have risen for advertisers seeking to target Android users. Those shifts come after many in the digital-ad industry warned that Apple’s changes, which the tech giant framed as part of a broader user-privacy crackdown, would limit advertisers’ access to data about consumers and hurt their business.
Digital advertisers say they have lost much of the granular data that made mobile ads on iOS devices effective and justified their prices. In recent months, ad-buyers have deployed their iOS ad spending in much less targeted ways than were previously possible, marketers and adtech companies say. The shortage of user data to fuel Facebook’s suite of powerful ad-targeting tools reduces their effectiveness and appeal among some advertisers, ad agencies say.
Apple, for its part, sells ads only in a handful of its own apps and doesn’t take a cut of ad revenue in third-party iOS apps. While advertisers have shifted their spending across the products of Apple’s large rivals — Mark Zuckerberg’s Facebook and Sundar Pichai’s Google, which depend much more heavily on ad revenue — it isn’t clear yet how the change has affected overall spending across the digital-ad giants.
An Apple spokesman declined to comment.