Advertisers flee to Android as majority of iOS users opt out of ad tracking

Posted:
in iOS
According to data from the Post-IDFA Alliance, only 36.5% of iOS 14.5 users are opting in to ad tracking, which is causing an advertiser exodus to Android.

Advertisers increase spending on Android as iOS 14.5 blocks tracking
Advertisers increase spending on Android as iOS 14.5 blocks tracking


App Tracking Transparency is a feature introduced in iOS 14.5 that allows users to stop ad tracking across apps and the web. This controversial feature disables one of the widest used tracking identifiers -- IDFA.

A coalition of advertisers that call themselves the Post-IDFA Alliance collected their advertising data to compare how the market is shifting. The group includes AdColony, Fyber, Chartboost, InMobi, Vungle, and Singular.

Advertising spend on Android has increased from anywhere between 8.3% to 21% for these firms. This upward trend is accompanied by a universal decrease in spending on iOS advertising, but only by about 3%. Vungle is the only company that increased spend on both platforms, increasing by 21% on Android and 3.3% on iOS.

The group says the spending changes are experimental while observing trends in the industry. Ultimately, it is expected that ad spend will increase across the industry.

In the two weeks following iOS 14.5's release, the Post-IDFA Alliance says adoption ranged from 11.5% to 14.92% and called it a "low adoption rate relative to past iOS updates." The group's data on adoption rate does not appear to be correct -- the adoption rate is normal for a point release, incrementing a version by 0.1 update versus and may be slightly faster than the adoption rate from iOS 14.1 to iOS 14.2.

Of those updated to iOS 14.5, around 36.5% of users have opted into data collection, according to AdColony's data. One member of the Alliance, Singular, says only 16.8% of users opted in. About 18.9% of users toggled off "Allow Apps to Request to Track" from Settings entirely.

The rate of opt-in differs between each member, but between the high of 36.5% and the low of 16.8%, neither figure represents a worst-case scenario for the industry.

Ad impression costs are down as well. The industry expected a drop when iOS 14.5 released, but it may be temporary. Alliance partners predict that impression cost will steadily increase as marketers feel more confident with ad performance despite App Tracking Transparency.

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Comments

  • Reply 1 of 27
    chadbagchadbag Posts: 1,497member
    Have to see how this plays out, but my initial reaction is "good deal".   Hopefully it leads to fewer ads.  I don't rely on "free" ad supported services myself so personally like the idea of the demise of ads as an end result. 

    I use these kinds of services but don't rely on them and can adjust 
    magman1979Beatsdigitoldarkvaderwatto_cobra
  • Reply 2 of 27
    heli0sheli0s Posts: 48member
    Why do you continue to describe as a "controversial feature" something that should have been there since day one, which is asking people consent with how their data is used?
    magman1979hydrogenlkruppwilliamlondonMisterKitStrangeDaysdigitolchristopher126viclauyycjahblade
  • Reply 3 of 27
    FlytrapFlytrap Posts: 56member
    According to data from the Post-IDFA Alliance, only 36.5% of iOS 14.5 users are opting in to ad tracking, which is causing an advertiser exodus to Android.
    Good Riddance!
    williamlondondigitolchristopher126jahbladebaconstangzeus423radarthekatjeffharrisdarkvaderwatto_cobra
  • Reply 4 of 27
    lkrupplkrupp Posts: 9,530member
    Flytrap said:
    According to data from the Post-IDFA Alliance, only 36.5% of iOS 14.5 users are opting in to ad tracking, which is causing an advertiser exodus to Android.
    Good Riddance!
    Until it starts to hurt the bottom line. Conversely it may also cause a privacy conscious user exodus from Android to iOS.  That would be good.
    tmaywilliamlondonMisterKitBeatsdigitoljahbladezeus423radarthekatjeffharrisMplsP
  • Reply 5 of 27
    crowleycrowley Posts: 8,858member
    Android is welcome to them.
    Beatsdigitolzeus423FileMakerFellerwatto_cobra
  • Reply 6 of 27
    IMHO the industry will learn that tracking wasn't boosting up ad engagement and value as much as they believe it did. I'm not religiously against ads, except when they are intrusive and/or are present in services that I do pay for (like some streaming services do). Those I can't stand. If I'm paying, I don't want any ads.
    digitolstompybaconstangzeus423hlee1169radarthekatFileMakerFellerchasmjeffharriswatto_cobra
  • Reply 7 of 27
    rotateleftbyterotateleftbyte Posts: 1,533member
    This move has IMHO, a wider impact than just the Android vs IOS wrt Advertising.

    I know that I'm not alone in saying that 'I've had it with Adverts'. We get so many things promoted to us every waking hour that if every ad exec was taken out and shot (not really asking for it) then I'd cheer. I'm fed up with ads. If I get bombarded with too many ads for a particular make of thing then I make sure that I will never ever buy that particular thing.
    Eventually, the laws of diminishing returns will kick in and people will like me just tune out when it comes to ads.
    At least here in the UK, we have the BBC which does not carry ads. Yes, I pay them a license fee every year but at least I don't get some Z level celeb trying to push something that they'd never be seen dead using invading my personal space 4 times an hour.
    Every TV prog that I watch is recorded just so that when I come to watch it, I can skip over the ads.

    Did I say that I hate ads? Well, I do.

    Well done Apple.
    thtOferdewmedigitolchristopher126baconstangzeus423radarthekatFileMakerFellerjeffharris
  • Reply 8 of 27
    BeatsBeats Posts: 2,551member
    36.5% opting in? Wasn’t the last research claiming only 5%?

    I still think Apple discontinuing iAd was one of the worst decisions ever. How will this “less ad spending” affect Apple negatively? How will it affect the biggest ad company in history, Google?

    I heard there may be a mass migration to iPhone and Apple Music(halo effect by Android users may convert them over). I wonder if this will balance off any negatives, if there even is any for Apple.
    Cesar Battistini Maziero
  • Reply 9 of 27
    I love it. It's like a system-wide ad blocker implemented by Apple. I wonder if there will be any negative impacts for iOS users? It is really tempting to smash that NO button. The advertisers really have not done a good job of explaining why answering Yes is worthwhile to the end user which is the entire reason the button was put in to begin with: Advertisers are doing things which are not in the best interest of users.
    Personally I kind of like ads. Remember those ones that surrounded the entire screen with bars showing synchronized animations that Apple did in the Mac vs PC days? They were wonderful. I miss seeing them but I run an ad blocker all the time. I have never even once been asked by a web site why I run an ad blocker. The just whine at me to turn it off. Here are the reasons why I run an ad blocker even though I like ads:
    1. There is no who guarantees that ads are safe and don't contain malware.
    2. Ads are the #1 vector for malware including ransomware due to unsafe javascript.
    3. Ads use 99% of the bandwidth on most web sites. A kilobyte of useful text and tens of megabytes of crap.
    4. There are no industry rules for what an ad can do on your computer and no one to enforce the rules if they did exist.
    5. Ads not only track you but keep finding ways to extract value from you that have nothing to do with advertising.
    j2fusionbaconstangzeus423radarthekatFileMakerFellerelijahg
  • Reply 10 of 27
    StrangeDaysStrangeDays Posts: 11,675member
    I'm confused -- isn't the point of advertising for viewers to actually, you know, buy things? The data has shown us for years that majority of mobile purchases are from iOS users. Why advertise on a platform that people don't purchase from?

    Anyway, their complaints are all nonsense. I was a web dev for major dot-coms during the first bubble, and we didn't have app tracking. We just had your basic banners, implemented on our sites via Doubleclick, we didn't have nearly all the various signals advertisers want today (we just thought it was cool enough to get the banner and side bar ads to match!), and it was fine. They'll live.
    edited May 19 christopher126zeus423Rayz2016watto_cobra
  • Reply 11 of 27
    tzx4tzx4 Posts: 13member
    1.   HA haaaaa.......

    2.  This makes me want Android more than ever.......not.
    zeus423watto_cobra
  • Reply 12 of 27
    And that's a bad thing why?
    zeus423watto_cobra
  • Reply 13 of 27
    avon b7avon b7 Posts: 5,932member
    Anything that puts choice back into users' hands can only be good in my book so this opt in requirement is a move in the right direction.

    Advertisers will have to adapt. There may or may not be 'consequences' but if there are, consumers will have to adapt.

    It can't be a free-for-all for advertisers in detriment to consumers. 
    baconstangzeus423muthuk_vanalingam
  • Reply 14 of 27
    avon b7 said:
    Anything that puts choice back into users' hands can only be good in my book so this opt in requirement is a move in the right direction.

    Advertisers will have to adapt. There may or may not be 'consequences' but if there are, consumers will have to adapt.

    It can't be a free-for-all for advertisers in detriment to consumers. 
    Chances are you'll see even more ads.

    The fact that you can't target them at an individual or class of users means you have to shotgun them to everyone in your target demographc - and Apple users in general are just plain more wealthy (and thus better prospects) than Android users.

    This whole secretly track users and maintain secret profiles thing on ad tracking platforms is morally bankrupt.
    baconstangthtchasmwatto_cobra
  • Reply 15 of 27
    22july201322july2013 Posts: 2,576member
    Would it be illegal for a website operator to exclude iOS from devices it will serve web pages to? This could be a way to fight Apple's Anti App Tracking Transparency Technology.

    After all, I've been arguing for years that Apple has the right to leave markets that make their business non-profitable, so I should feel the same way about website operators refusing to service iOS users for the same reason.

  • Reply 16 of 27
    citpekscitpeks Posts: 162member
    Jobs held the belief that "…customers don't know what they want until we've shown them."

    Then, in 2010, he said this:

    "Privacy means people know what they’re signing up for, in plain English, and repeatedly. That’s what it means. I’m an optimist, I believe people are smart. And some people want to share more data than other people do. Ask them. Ask them every time. Make them tell you to stop asking them if they get tired of your asking them. Let them know precisely what you’re going to do with their data.  That’s what we think."

    Advertisers may be objecting, and some users may even be asking why it took Apple so long, but it is adhering to those long held principles.

    Some may have wondered, once the internet became mainstream, and embraced by the world as an amazing force, how long it would take before it became corrupted, by greed and/or malice, and find the balance between its positives and negatives reach a sort of equilibrium, or topic for debate.  I did.

    Thanks to companies like Facebook, and the online ad industry in general, I guess the answer ended up being about 25-30 years.
    edited May 19 zeus423hlee1169chasmwatto_cobra
  • Reply 17 of 27
    silvergold84silvergold84 Posts: 104unconfirmed, member
    I think android is the right place for who want make money with personal informations of users (often without let know it).
    zeus423watto_cobra
  • Reply 18 of 27
    mejsricmejsric Posts: 149member
    crowley said:
    Android is welcome to them.
    and Android users will just download APK with removed ads version.
    zeus423
  • Reply 19 of 27
    mattinozmattinoz Posts: 1,654member
    I'm confused -- isn't the point of advertising for viewers to actually, you know, buy things? The data has shown us for years that majority of mobile purchases are from iOS users. Why advertise on a platform that people don't purchase from?

    Anyway, their complaints are all nonsense. I was a web dev for major dot-coms during the first bubble, and we didn't have app tracking. We just had your basic banners, implemented on our sites via Doubleclick, we didn't have nearly all the various signals advertisers want today (we just thought it was cool enough to get the banner and side bar ads to match!), and it was fine. They'll live.
    Most of ads you seen online seem to be for clear scams, doubly so for Facebook. They don't really want you to buy things they just want your money. Maybe Android is more lucrative overall by playing the numbers games. 

    watto_cobra
  • Reply 20 of 27
    chasmchasm Posts: 2,400member
    There is a perception among some people (here but mostly elsewhere) that data collection is no longer possible.

    That isn't true. Lots of data still being collected on a given site, from what you searched for to what your public IP address is (if you have one), location, and other "generic" forms of data mining. What's dead as of 14.5 is web stalking.

    Most advertisers can get all the data they need to personalize and target ads without needing to web-stalk, and anyway the main byproduct of web-stalking is more profit for FB and Google, and more targeted psychological manipulation and propaganda. That's not a good thing, and thus it isn't needed.

    I remain dumbfounded that web stalking is both somehow perceived as a right for companies to collect surreptitiously, or even legal for that matter. It ought to be outlawed outright, the same way phyical stalking is illegal. Users should absolutely have a codified right to be aware of, and consent to, data collection and how it is used.
    edited May 19 thtwatto_cobra
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