Advertisers 'staring into the abyss' as Apple limits ad tracking

Posted:
in iOS edited April 9
Apple's forthcoming App Tracking Transparency privacy feature in iOS 14 leaves advertisers guessing, but sure that revenues will be hit.

Users will be asked whether they want to allow ad tracking or not
Users will be asked whether they want to allow ad tracking or not


As Apple reminds developers to prepare for App Tracking Transparency (ATT) in iOS 14.5, marketing firms expects their $105 billion US mobile ad industry to take a hit.

According to AdWeek, the expectation is that few iOS users will elect to allow ad tracking once they are prompted to choose.

"[Opt-out] rates among users seeing test prompts aren't encouraging," says Adweek, "the median opt-in rate so far is 32%. The mobile advertising sector is staring into the abyss as the privacy changes loom."

One source told the publication that the industry is facing a repeat of what happened when Apple introduced Intelligent Tracking Prevention (ITP) to Safari in 2018. ITP allegedly caused ad firms to lose hundreds of millions of dollars in expected revenues.

As previously reported by AppleInsider, the publication also says that a significant number of advertisers are planning to move away from iOS to Android.

Another source said their firm expects an initial 9% drop in revenues. Facebook, until its recent about-face, has predicted advertisers will see a 60% hit.

"But what happens next is anyone's guess, with almost half of all marketers now scurrying for a fresh means of ad targeting and measurement," says Adweek.

Apple's App Tracking Transparency will prompt users to choose whether to allow ad tracking or not, the first time they open any app that relies on this. Alongside ATT, Apple is deprecating its old Identifier for Advertisers (IDFA) and instead introduce new advertising frameworks.

Separately, Craig Federighi has said he believes advertisers' fears are unfounded, and that Apple's new anti-tracking move will be emulated by all technology companies.

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Comments

  • Reply 1 of 21
    davgregdavgreg Posts: 811member
    There are no tears in my household for data miners, online advertising companies and anything related to Facebook.


    mobirdfred1aderutterDogpersoncaladanianwatto_cobra
  • Reply 2 of 21
    crowleycrowley Posts: 7,804member
    A bad outcome of this would be seeing more untargetted advertising, as there's less scope for the more profitable targeted advertising.
  • Reply 3 of 21
    sdw2001sdw2001 Posts: 17,534member
    crowley said:
    A bad outcome of this would be seeing more untargetted advertising, as there's less scope for the more profitable targeted advertising.
    I couldn't care less.  Internet advertising is the the bane of my existence.  I shouldn't be tracked or targeted unless I give my consent.  I'm fine with Amazon showing me what they think I'm interested in based on my history, even my search history or what not.  Using Alexa or Siri to help ad targeting?  No problem.  But I don't want Facebook tracking me after I leave the platform, or tracking/listening while I'm not actively online.  Some of the apps are scooping up unbelievable amounts of data, and people by and large have no idea.  I'm not a privacy fanatic...pretty much everything we do online can be tracked.  But it shouldn't happen by default or be murky/deceptive.  
    lollivermobirdbadmonkmuthuk_vanalingamcaladanianwatto_cobra
  • Reply 4 of 21
    tyler82tyler82 Posts: 965member
    Advertisers can always go to YouTube. I generally see at least 4 ads for every 2 minutes of video on that shameless app. 
    fred1foregoneconclusionwatto_cobraStrangeDays
  • Reply 5 of 21
    DAalsethDAalseth Posts: 1,553member
    In six months advertisers will discover that A) online advertising is not as effective as they thought it was and this change made little impact. And B ) targeted advertising was nowhere near worth what they were paying. 

    this is why FB and such were all up in arms about Apple’s changes. They were less worried about losing advertising dollars, as much as they were their customers finding out that what they were selling was not that valuable. They’ve been doing this song and dance for years about how they have this wildly valuable product, when those of us on this end know otherwise. 

    Do you click on online ads? I know I don’t and I know anyone who does.

    If I want something I look for it, I go to the site directly. I have never been reading AppleInsider, or Tumblr, or a news site and suddenly thought, “Gee that makes sense I think I will buy that Dell Server”. 

    Online advertising is nowhere ass effective as they claim it is.
    edited April 9 mobirdiyfcalvinaderuttersdw2001muthuk_vanalingamcaladanianapplguywatto_cobrafirelock
  • Reply 6 of 21
    tundraboytundraboy Posts: 1,747member
    sdw2001 said:

     But I don't want Facebook tracking me after I leave the platform, or tracking/listening while I'm not actively online.
    You hit the nail right on the head on why Facebook is just so evil.  Even if you've never ever opened a Facebook account, they will still open a file on you and collect as much data about you as they can.  Why that is legal beats me.
    iyfcalvinn2itivguysdw2001Dogpersonwatto_cobra
  • Reply 7 of 21
    mobirdmobird Posts: 565member
    Why did Apple allow these apps in the first place?
    Maybe it has to do with ‟$$¢$$” ¿‽¿
  • Reply 8 of 21
    mobirdmobird Posts: 565member
    DAalseth said:
    In six months advertisers will discover that A) online advertising is not as effective as they thought it was and this change made little impact. And B ) targeted advertising was nowhere near worth what they were paying. 

    this is why FB and such were all up in arms about Apple’s changes. They were less worried about losing advertising dollars, as much as they were their customers finding out that what they were selling was not that valuable. They’ve been doing this song and dance for years about how they have this wildly valuable product, when those of us on this end know otherwise. 

    Do you click on online ads? I know I don’t and I know anyone who does.

    If I want something I look for it, I go to the site directly. I have never been reading AppleInsider, or Tumblr, or a news site and suddenly thought, “Gee that makes sense I think I will buy that Dell Server”. 

    Online advertising is nowhere ass effective as they claim it is.
    Absolutely agree with your comments!

    Right now here on AI the ad is for a dialysis RN- excuse me while I go apply... I always thought about becoming one. /s
    watto_cobra
  • Reply 9 of 21
    larryjwlarryjw Posts: 774member
    I've never known why advertisers believe their ads are effective. 

    They are a bane to existence. I go to a site to read the material there. Anything that gets in the way of that task is a distraction. 

    What is worse is on many sites these popup ads actually prevent me from reading the article contents as the ads end up shifting the page layouts to accommodate the ad images, making it impossible to read the articles.

    Result -- totally avoid going to the sites now. Surprisingly I haven't missed them. 
    sdw2001applguywatto_cobrawd4fsu
  • Reply 10 of 21
    dewmedewme Posts: 3,602member
    In other news ... the Tiny Violin company is seeing a huge surge in demand for their products.
    edited April 9 mobirdn2itivguyTRAGsdw2001watto_cobra
  • Reply 11 of 21
    jd_in_sbjd_in_sb Posts: 1,589member
    I look forward to not seeing the same ads everywhere I browse after doing a Google search. 
    watto_cobra
  • Reply 12 of 21
    gatorguygatorguy Posts: 22,873member
    tyler82 said:
    Advertisers can always go to YouTube. I generally see at least 4 ads for every 2 minutes of video on that shameless app. 
    I never see Youtube commercial ads. There's a way for you to avoid them too. You know, that thing the members here so often say they're willing to do in order to avoid them?

    Spend money rather than buy with data. Google has paid YouTube subscriptions.

    edited April 9 caladanian
  • Reply 13 of 21
    gatorguygatorguy Posts: 22,873member
    sdw2001 said:
    crowley said:
    A bad outcome of this would be seeing more untargetted advertising, as there's less scope for the more profitable targeted advertising.
    I couldn't care less.  Internet advertising is the the bane of my existence.  I shouldn't be tracked or targeted unless I give my consent.  I'm fine with Amazon showing me what they think I'm interested in based on my history, even my search history or what not.  Using Alexa or Siri to help ad targeting?  No problem.  But I don't want Facebook tracking me after I leave the platform, or tracking/listening while I'm not actively online. 


    Fully agree that companies should be upfront about it, and that the default setting should be off rather than opted in unless you specifically say otherwise. FWIW Apple is guilty in this regard AFAIK with certain ad and data gathering settings on by default on your new iPhone.  Users rarely change default settings and the companies use that to their advantage.
    muthuk_vanalingam
  • Reply 14 of 21
    sdw2001sdw2001 Posts: 17,534member
    gatorguy said:
    sdw2001 said:
    crowley said:
    A bad outcome of this would be seeing more untargetted advertising, as there's less scope for the more profitable targeted advertising.
    I couldn't care less.  Internet advertising is the the bane of my existence.  I shouldn't be tracked or targeted unless I give my consent.  I'm fine with Amazon showing me what they think I'm interested in based on my history, even my search history or what not.  Using Alexa or Siri to help ad targeting?  No problem.  But I don't want Facebook tracking me after I leave the platform, or tracking/listening while I'm not actively online. 


    Fully agree that companies should be upfront about it, and that the default setting should be off rather than opted in unless you specifically say otherwise. FWIW Apple is guilty in this regard AFAIK with certain ad and data gathering settings on by default on your new iPhone.  Users rarely change default settings and the companies use that to their advantage.
    I don’t think Apple ad practices can hold a candle to the evils of Facebook and Google. There might be certain things on by default but overall I actually think Apple he’s pretty astounding when it comes to privacy. The number of times I am asked if an app can use my location, etc. is remarkable.  
    Dogpersonwatto_cobra
  • Reply 15 of 21
    gatorguygatorguy Posts: 22,873member
    sdw2001 said:
    gatorguy said:
    sdw2001 said:
    crowley said:
    A bad outcome of this would be seeing more untargetted advertising, as there's less scope for the more profitable targeted advertising.
    I couldn't care less.  Internet advertising is the the bane of my existence.  I shouldn't be tracked or targeted unless I give my consent.  I'm fine with Amazon showing me what they think I'm interested in based on my history, even my search history or what not.  Using Alexa or Siri to help ad targeting?  No problem.  But I don't want Facebook tracking me after I leave the platform, or tracking/listening while I'm not actively online. 


    Fully agree that companies should be upfront about it, and that the default setting should be off rather than opted in unless you specifically say otherwise. FWIW Apple is guilty in this regard AFAIK with certain ad and data gathering settings on by default on your new iPhone.  Users rarely change default settings and the companies use that to their advantage.
    I don’t think Apple ad practices can hold a candle to the evils of Facebook and Google. There might be certain things on by default but overall I actually think Apple he’s pretty astounding when it comes to privacy. The number of times I am asked if an app can use my location, etc. is remarkable.  
    I'm always asked if an app can use my location on my Pixel. Newer versions of Android have very granular permissions, equal to your iPhone. Even better Google doesn't keep a key to unlock my Google Cloud data if anyone comes a knockin' even with a subpoena. Impossible for Google to comply since it's all encrypted while on my phone, in transit, or stored in the Cloud. Apple hasn't reached that point yet. 

    Things have improved a lot on Android in the past three years, prompted no doubt by Apple leading the way. Kudos Apple.   
  • Reply 16 of 21
    As previously reported by AppleInsider, the publication also says that a significant number of advertisers are planning to move away from iOS to Android.
    I say, good riddance!

    I understand that developers have to eat and have bills to pay... but, if I have to choose between the two evils of ads that follow me around from one app to the next, and in-app payments, I will pick the latter most times (some in-app payments are just rip-offs).

    The other day I watched my son playing an iOS game that had so many ads, that he was getting an unskippable 30-second ad for every minute or two of game time - that is just ridiculous! It made a fun little game unplayable. Even after I paid the in-app subscription, the ads did not stop... they were just reduced in number and some became skippable. Developers should at least give users of their apps the option to pay for the app or pay to use certain features of the app in lieu of being tracked by ad agencies who then use that data to bombard us with targeted ads.
    applguywatto_cobra
  • Reply 17 of 21
    normmnormm Posts: 636member
    I think the wording of the opt-in/opt-out message is poor.  It should really be, "Your data will be used to personalize ads that are delivered to you."  You are opting in/out of allowing personalization, not in/out of allowing ads!  Many would prefer the ads they are forced to look at to be of interest to them.
    watto_cobra
  • Reply 18 of 21
    fastasleepfastasleep Posts: 5,385member
    jd_in_sb said:
    I look forward to not seeing the same ads everywhere I browse after doing a Google search. 
    Why do you use Google at all if you're concerned about targeted ads?
    Dogpersonwatto_cobra
  • Reply 19 of 21
    fastasleepfastasleep Posts: 5,385member

    DAalseth said:

    this is why FB and such were all up in arms about Apple’s changes. They were less worried about losing advertising dollars, as much as they were their customers finding out that what they were selling was not that valuable. They’ve been doing this song and dance for years about how they have this wildly valuable product, when those of us on this end know otherwise. 
    You definitely sound like someone who's never ran targeted Facebook ads.  They're most definitely effective.

    Do you click on online ads? I know I don’t and I know anyone who does.
    You absolutely do know people who click on ads. Regardless, there's a reason ad sales are generally based on thousands of *impressions* and not clicks. Engagement with online ads doesn't require anything other than eyeballs, just like with radio ads and ears. 

    If I want something I look for it, I go to the site directly. I have never been reading AppleInsider, or Tumblr, or a news site and suddenly thought, “Gee that makes sense I think I will buy that Dell Server”.
    Online advertising is nowhere ass effective as they claim it is.
    Anecdotal data is andecdotal. Meanwhile, advertisers have real-world data from campaigns they can analyze that proves you wrong.
    watto_cobra
  • Reply 20 of 21
    chadbagchadbag Posts: 1,351member
    So who is losing the money here?   The advertisers? Or the advertising providers/networks?  The article seems to use the word “advertiser” but then talk about losses the platforms will supposedly take.  They are two different things.  

    Will the RN-degree-providers, Dell, etc (using examples from comments) sell fewer degree programs, servers, widgets and hence lose sales or will the platforms lose by being unable to provide targeted ads and have to settle for the lower revenue of untargeted ads?   Or both?   The article is not clear.  


    watto_cobra
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