Months after tech giant Apple launched App Tracking Transparency (ATT), a new analysis has predicted its second year will still see major disruption to advertisers, with Facebook, YouTube and more collectively losing around $16 billion.
According to AppleInsider, the tech giant released its feature in iOS 14 on April 26, last year, and it immediately had an impact on companies relying on advertising revenue.
By July, it was estimated to be causing a 15 per cent to 20 per cent revenue drop for advertisers.
Then Facebook's CEO Mark Zuckerberg reported that his company would see a $10 billion revenue hit in 2022. In October 2021, Snapchat's parent company Snap saw its stock price fall 25 per cent over fears regarding the impact of ATT.
Now a new analysis by research firm Lotame said that ATT is continuing to have an impact -- even though it is lessening.
Alongside ATT, Apple deprecated its old IDFA (Identifier for Advertisers) technology, but it has introduced new frameworks to help advertisers, and they appear to be being adopted.
"[For its second year] we think the IDFA change will have an impact on the companies of nearly $16 billion," said Lotame in its report.
"Again with the lion's share of that impact (81 per cent) coming from Facebook," it added.
That 81 per cent for Facebook represents an estimated $12.8 billion.
Lotame estimated the rest of the lost revenue as $546 million for Snap, $323 million for Twitter and $2.2 billion for YouTube.
However, Lotame described both Snap and Twitter as having "largely shrugged off" the situation. Each is adapting to using the new measurement systems provided by Apple, for instance.
Then, too, Facebook is working to decrease its reliance on Apple and is reportedly providing advertisers with new tools.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU