Two thirds of iPhone users may block ad tracking, report says
- It is expected that about 68% of iPhone users will choose to block ad tracking, according to AppsFlyer.
- The cost per mille of in-app ads is expected to drop by as much as 50%, according to Loch Rose from the marketing company Epsilon.
- Up to 58% of advertisers are planning on moving their business away from the Apple ecosystem and concentrating more on Android devices and smart TV’s as a result of this news.
We have reported extensively about Apple’s upcoming App Tracking Transparency feature. Due to this new feature being introduced in iOS 14.5, it is expected that about 68% of iPhone users will choose to block ad tracking, directly impacting advertisers. These numbers were studied by AppsFlyer, a mobile marketing and attribution company. They took the information from 300 apps across 2,000 different devices.
As we previously stated, Apple has made it clear that apps will now require explicit permission before accessing an iPhone's advertising identifier (or IDFA), starting with iOS 14.5 and above. Your IDFA is used to track your usage across apps and websites for ad targeting purposes.
Nobody really knows for sure what will happen once Apple's tracking prompts become widespread, but the cost per mille of in-app ads — which is the cost an advertiser pays for one thousand views or impressions — is expected to drop by as much as 50 percent, according to Loch Rose from the marketing company Epsilon. To make matters worse, recent analysis shows that the median of users opting in to ad tracking is just 32%.
Of course, advertising companies and the industry as a whole are concerned about this news. Their main concern seems to be the decline of IDFA’s, a unique identifier given to every device by Apple. This will make targeted advertising almost impossible on Apple’s devices. Therefore, app developers and publishers are expecting revenues to be hit in the short term.
The move sparked a protest from Facebook, one of the companies that makes most of its money from online ads. The ability to track users is essential for serving personalized ads and monitoring the performance of those campaigns. Facebook has claimed that Apple’s new privacy features will hurt the free web and small businesses, launching its own ad campaign asking users to continue to allow it to track them once iOS 14.5 rolls out. — BGR
It is expected that 58% of advertisers are planning on moving their business away from the Apple ecosystem and concentrating more on Android devices and smart TV’s as a result of this news.
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