Sunday, May 22

Apple will cost Facebook $12.8 billion with its privacy policy

Users of the mobile app have overwhelmingly rejected the tracking of their activity, causing Facebook to lose valuable advertising data.

It has been about a year since Apple rolled out App Tracking Transparency (ATT), its new ad ID system.

A new ad tracking system that is less intrusive and devastating for the ad giants

The new mechanism, which replaces the previously used IDFA, now requires user consent, in the form of a pop-up window that appears when the application is first launched.

Companies that depend on online advertising, led by Facebook, were immediately up in arms over this new practice by Apple, which significantly degraded their revenue. Although the Californian manufacturer delayed the launch of ATT by a few months, it did not back down and integrated it into the iOS 14.5 update in April 2021.

The consequences were immediate for Facebook’s turnover, which estimated a drop in revenue of between 15 and 20% after the activation of ATT. Meta, the parent company of Mark Zuckerberg’s group, later estimated that the losses linked to this new system, which is more respectful of privacy and personal data, would amount to 10 billion dollars.

Facebook almost completely disrupted by the arrival of ATT on Apple’s OS

A new analysis released recently is even more worrying for the social network’s finances. According to data from the firm Lotame, Facebook is expected to lose around 12.8 billion dollars in the current year.

All of the major groups that rule the online advertising market will be disrupted, but Facebook accounts for no less than 81% of this revenue loss, estimated at a total of $16 billion. YouTube is expected to lose $2.2 billion, and Snapchat and Twitter are expected to lose $546 million and $323 million respectively.

To explain this discrepancy, the study indicates that the latter two companies have adapted their tools to those of Apple to limit the financial damage to their results. Facebook will have to do the same in the coming weeks if it wants to reduce its losses linked to ATT. Its teams are already reworking its own solutions for advertisers.