Apple paired up its iOS 14.5 launches with the App Tracking Transparency (ATT) feature in May. This feature prevents third-party marketers from tracking users all the time, thus helping users maintain online privacy. But, according to a report by The Wall Street Journal, this feature has caused advertisers to shift towards Android.
Data from ad analytics firm Tenjin suggests that spending on iOS ad platforms has been cut down by almost one-third after the launch. This same period has seen a 10% growth in ad spending on Android platforms.
The Price of Privacy
The reports also suggested that according to ad agency Tinuiti, post-ATT, advertisers could no longer bid for targeted advertisements on iPhones. This made them move to Android platforms. Android saw a 16% jump in demand for the target on the platform. It was up from its 46% year-on-year growth in May to 64% in June.
These very reports stated a 17% fall in iOS ad spending in the same period. iOS fell from 42% growth in May to 25% in June following the launch of the ATT feature. Apple’s push for privacy has put a break on iOS’s growth. iOS is still growing but at a declining rate.
Pros & Cons of ATT for companies like Facebook
ATT feature gives users the option to choose if they would want a third-party app to track them. A survey among iPhone users in the US showed that a massive 91% of users would prefer the not tracking option. This made it difficult for companies like Facebook, Instagram to track smartphone IDs and personalize delivering ads. This was a major revenue source for these companies, and thus a move to Android options would only seem beneficial.
Facebook remarked on the ATT feature saying, “While we expect iOS 14.5 to be a headwind for the remainder of the year, the impact on our business will be manageable,”. This being said, a huge chunk of Facebook’s users are using Android devices and it means that Facebook is benefiting from the new feature in a way. With the increment in ad rates of Android, companies like Facebook, are likely to profit.