Report: Apple's Consumer-Friendly Privacy Features Have Cost Social Media Giants Almost $10 Billion
A recent study has found that Apple’s consumer-friendly privacy standards for iPhones and other devices have cost social media giants including Meta (Facebook), Twiter, Snapchat, and YouTube $10 billion in revenue in the second half of 2021.
The Financial Times reveals in a recent report that Facebook, Snap, Twitter, and YouTube have lost an estimated $9.85 billion in revenue in the second half of 2021 primarily due to Apple’s recent privacy changes. Apple introduced its App Tracking Transparency policy in April, forcing apps to request users’ permission to track their behavior and serve them with personalized ads. Mark Zuckerberg looking perturbed ( Drew Angerer /Getty) YouTube Boss Susan Wojcicki ( NICHOLAS KAMM /Getty) Unsurprisingly, most users chose not to be tracked by the apps that they use which has resulted in advertisers finding it harder to target their ads and cutting back on their ad spending as a result. Many have cut back on spending across Snap, Facebook, Twitter, and YouTube and are opting to avoid Android phone users. Some advertisers are even beginning to invest in Apple’s own ad business. Facebook COO Sheryl Sandberg stated recently that the iPhone changes meant “the accuracy of our ads targeting decreased, which increased the cost of driving outcomes for our advertisers. And . . . measuring those outcomes became more difficult.” Facebook has even shifted its account of users to bolster its ad business. Ad tech firm Lotame estimated that the four tech platforms lost around 12 percent of revenue in the third and fourth quarters, an estimated $9.85 billion. Snap appeared to be affected the worst as its business is focused primarily on smartphones while Facebook lost the most in absolute terms due to its size. Lotame Chief Operating Officer Mike Woosley commented on how the changes affected targeted advertising, stating: “Well, now to get 1,000 men you have to show it to 2,000 people, because all of a sudden you don’t know who is a man and who is a woman. And you still only have $5 for those 2,000 impressions. So your acquisition costs doubled and the lost yield is 50 percent.” Read more at the Financial Times here. Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan or contact via secure email at the address lucasnolan@protonmail.com.
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