App Tracking Transparency causing 15% to 20% revenue drop for advertisers

Posted:
in General Discussion
Apple's App Tracking Transparency feature is causing a 15% to 20% drop in revenue for iOS advertisers, according to a mobile marketing executive.

Credit: Apple
Credit: Apple


In an interview with GamesBeat, Consumer Acquisition's Brian Bowman says that Apple's change to Identifier for Advertisers (IDFA) tracking has had a devastating impact on iOS advertising revenue.

"Certain clients are down 30% to 40% percent in revenue. Others are feeling less of an impact. It's a mess," Bowman said.

In addition to seeing advertising revenue plummet, iOS advertisers have also started noticing an inflation in unattributed organic traffic. That means advertisers aren't as able to tailor ad placement to specific audiences.

Bowman noted that the full impact of ATT has yet to be felt. Advertisers will begin to feel the full effects of the feature about 30 days after iOS 14.6 adoption reaches 80%, Bowman said.

Larger companies are not expected to feel the brunt of ATT as their app catalogs generate a considerable amount of first-party data, but Small- to medium-sized businesses that rely on ad revenue will need to adapt.

"At the very high end, the companies that are amassing a walled garden of IDFVs are on a path to do better," Bowman said. "Small to medium-sized developers just don't have the financial ability to move into in-app purchases. You need an awful lot of money to do that."

Consumer Acquisition is a noted critic of ATT and has in the past been vocal about Apple's moves to nix IDFA tracking.

Apple's ATT feature, released earlier in 2021, restricts tracking of consumer data unless users opt in. Back in May, it appeared that only 4% of iOS users were opting-in to ad tracking. As of July, that number appears to have risen to about 20%, according to GamesBeat.

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Comments

  • Reply 1 of 21
    I’m crying a river for these privacy breaking leeches.
    rob53pichaelStrangeDayswilliamlondonmagman1979digitolrepressthisdysamoriaentropysAlex_V
  • Reply 2 of 21
    rob53rob53 Posts: 2,720member
    I’m crying a river for these privacy breaking leeches.
    Second that. Just wish we could also get rid of junk mail from USPS. 
    pichaelStrangeDayswilliamlondonbaconstangmagman1979digitolrepressthisdysamoriaentropyswatto_cobra
  • Reply 3 of 21
    auxioauxio Posts: 2,397member
    It's amazing the sense of entitlement these companies have.
    StrangeDaysfoadwilliamlondonmagman1979geekmeerepressthisdysamoriaentropysAlex_Vurahara
  • Reply 4 of 21
    iOS_Guy80iOS_Guy80 Posts: 551member
    rob53 said:
    I’m crying a river for these privacy breaking leeches.
    Second that. Just wish we could also get rid of junk mail from USPS. 
    Add to the list spam telephone calls.
    williamlondonrob53baconstangmagman1979repressthisdysamoriaentropysAlex_Vwatto_cobra
  • Reply 5 of 21
    StrangeDaysStrangeDays Posts: 11,759member
    This is fine. 
    williamlondonmagman1979repressthisdysamoriaentropysAlex_Vwatto_cobra
  • Reply 6 of 21
    foadfoad Posts: 708member
    auxio said:
    It's amazing the sense of entitlement these companies have.
    It is actually quite amazing that they feel like they are entitled to our data without consent. The only folks they should blame are themselves. They built an entire industry on maliciously targeting folks without their consent and now they are pissed that they can’t keep violating our privacy.
    williamlondonmagman1979fotoformatrepressthisdysamoriaentropysAlex_VRonnyDaddyp-dogcolumbia
  • Reply 7 of 21
    qwerty52qwerty52 Posts: 334member
    It sounds like a music in my ears!

    I hate personalized ads. 
    Those arrogant privacy-data thieves are pretending,
    that they know better than me, about what I like or what I need.
    williamlondonbaconstangAlex_Vp-dogwatto_cobra
  • Reply 8 of 21
    Interesting how much is being written about the advertising industry not making as much money, but little to nothing about how much more privacy we individuals are enjoying with these new features.

    Plus, given the constant whining of those who are "suffering," this means their "new" advertising probably isn't as effective. What this means is that we consumers aren't being manipulated to spend on things we neither need nor want which equates to Joe Consumer being richer. But obviously that's not important, what's important is big business not being able to take as much money from consumers and when something blocks that process, life is sad.

    Cry me a fucking river.
    Rayz2016Alex_Vp-dogDogpersonwatto_cobra
  • Reply 9 of 21
    sflocalsflocal Posts: 5,816member
    Wait... be right back... I dropped a tear somewhere.  Surely I can find it for these folks.  Might take a while.
    williamlondonmagman1979qwerty52geekmeedysamoriaAlex_Vp-dogwatto_cobra
  • Reply 10 of 21
    If I have to see ads, I like the random ads much better.  
    If I like an app that much, I pay for the ad-free version.  They get the money they need, and I don't have to navigate around ads.
    dewmeAlex_Vwatto_cobra
  • Reply 11 of 21
    magman1979magman1979 Posts: 1,240member
    BLOODY MARVELOUS!!!!!!
    Alex_Vwatto_cobra
  • Reply 12 of 21
    digitoldigitol Posts: 246member
    rob53 said:
    I’m crying a river for these privacy breaking leeches.
    Second that. Just wish we could also get rid of junk mail from USPS. 

    rob53 is now my new best friend. My thoughts for years exactly! In fact I'm a bit more extreme, and often wondered why snailMail mail exists in the first place.
  • Reply 13 of 21
    rob53rob53 Posts: 2,720member
    digitol said:
    rob53 said:
    I’m crying a river for these privacy breaking leeches.
    Second that. Just wish we could also get rid of junk mail from USPS. 

    rob53 is now my new best friend. My thoughts for years exactly! In fact I'm a bit more extreme, and often wondered why snailMail mail exists in the first place.
    I'm not going to bother to try and find a website that documents the percentage of advertising mail the USPS delivers because they would probably fake most of it but I'm sure what we call junk mail accounts for at least 75% of product delivered by USPS. When you include the Wednesday food ads, that alone by weight and square inches accounts for 70-80% of what I receive. Real mail accounts for at most 5% (bills, letters from real people, etc.) with the rest credit card applications and requests for money. If we got rid of the junk mail, the USPS could move real mail a lot quicker but would probably have to let 30-40% of mail carriers go. Truthfully, I am fine with receiving real mail twice a week. Even then I might only get a few pieces of mail a month. All my bills are paperless except for those that have to be delivered, like my Costco rebate check in February. 😉
    dysamoriaAlex_Vwatto_cobra
  • Reply 14 of 21
    yojimbo007yojimbo007 Posts: 1,149member
    Ahh the day Facebook falls on it face !!! along with all leeches. 
    Alex_Vwatto_cobra
  • Reply 15 of 21
    chadbagchadbag Posts: 1,520member
    These stories are hard to follow.   Who exactly are they talking about?

    * there are the advertising networks that place the ads.  
    * there are the app developers who use the ad networks to allow ads to be placed in their apps
    * there are the companies paying to advertise. 

    I  am not sure all who is being talked about.  Are the actual companies buying ads from the networks seeing less money (due to fewer sales of advertised wares)?  Are the app makers seeing less revenue because why?  They are still making the space available to the ad networks.  Or is it the ad networks themselves being able to charge less so therefore make less money (and they try and make you shed a tear for the app developer by deflecting the pity to them)?
    baconstangdysamoriaAlex_VFileMakerFellerwatto_cobra
  • Reply 16 of 21
    dysamoriadysamoria Posts: 3,430member
    I don’t see how enough time has gone by for there to be numbers like this. I am assuming these are FUD claims to bash the privacy directive.

    Also, if they’re suffering at all, they’re suffering from self-inflicted wounds. Advertisers have created a culture where they are hated by non-advertisers, and for good reason.
    watto_cobra
  • Reply 17 of 21
    dysamoriadysamoria Posts: 3,430member
    rob53 said:
    digitol said:
    rob53 said:
    I’m crying a river for these privacy breaking leeches.
    Second that. Just wish we could also get rid of junk mail from USPS. 

    rob53 is now my new best friend. My thoughts for years exactly! In fact I'm a bit more extreme, and often wondered why snailMail mail exists in the first place.
    I'm not going to bother to try and find a website that documents the percentage of advertising mail the USPS delivers because they would probably fake most of it but I'm sure what we call junk mail accounts for at least 75% of product delivered by USPS. When you include the Wednesday food ads, that alone by weight and square inches accounts for 70-80% of what I receive. Real mail accounts for at most 5% (bills, letters from real people, etc.) with the rest credit card applications and requests for money. If we got rid of the junk mail, the USPS could move real mail a lot quicker but would probably have to let 30-40% of mail carriers go. Truthfully, I am fine with receiving real mail twice a week. Even then I might only get a few pieces of mail a month. All my bills are paperless except for those that have to be delivered, like my Costco rebate check in February. 😉
    Internet traffic was once declared to be mostly spam. It’s an old stat, and I don’t recall the source, but I would love to see new stats. Streaming video eats a lot of bandwidth, but a lot of that is unsolicited video on news pages and ads interspersed around YouTube and Hulu videos. Email is probably 98% spam. Search engine results tend to show at least 50% of all websites are fake, designed to be click bait for search engine crawlers. Every news and aggregator site screams about ad blockers (some are possible to evade with reader mode, but not all)...

    Most of the bandwidth/data usage of the Internet is probably garbage no one asked for, and only corporations, exploitative businesses, and scammers want there.
    Alex_V
  • Reply 18 of 21
    lkrupplkrupp Posts: 9,628member
    Let’s see if the advertising lobby springs into action with its considerable financial clout. Let’s see if the politicians come up with a reason ATT is anti-competitive or monopolistic and try to shut it down. As always, money talks and bullshit walks.

    It’s also funny how much shit Apple can stir up having less than 50% of a market. Seems their bite is much larger than their bark. Turns out their ‘cog’ in the giant tech wheel machine is crucial to its functioning.
    FileMakerFellerwatto_cobra
  • Reply 19 of 21
    jimh2jimh2 Posts: 370member
    Agreeing with others that there is no way to measure results yet. They will be when they get several month to month comparisons. Way to early to spread FUD. Much like jobs that are no longer necessary (blacksmith, chimney sweep, milkman, etc) they will eventually go away. The difference between those jobs and advertisers is they profit off the consumer but are of zero benefit. 

    Once real stats are in Apple should broadcast this, along with all of their privacy guards,  around the world. A series of commercials could show what the various leeches of the internet do and how Apple beats it. Their platform is the only one where privacy is the priority. 
    watto_cobra
  • Reply 20 of 21
    iOS_Guy80 said:
    rob53 said:
    I’m crying a river for these privacy breaking leeches.
    Second that. Just wish we could also get rid of junk mail from USPS. 
    Add to the list spam telephone calls.
    The July 1 implementation of STIR/SHAKEN should have cut down significantly on spam calls (especially if your provider offers a blocking service like NoMoRobo).
    watto_cobra
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