Software

Apple triples mobile ad market share after privacy policy change

Apple’s advertising business tripled its mobile app advertising market share in six months after the company made a privacy policy change to prevent competitors like Facebook from serving targeted ads to consumers.

Hereinafter source: ft.com

Hereinafter source: ft.com

Apple’s Search Ads service offers paid ad space in the App Store above search results. So, for the request “Snapchat”, users can see TikTok in the first place. Mobile marketing company Branch estimates that up to 58% of all iPhone app downloads are attributed to ad click-throughs, up from just 17% a year ago.

In general, the app advertising market is quite large and continues to grow. Analytics firm AppsFlyer reported that marketing spending on iPhone and Android smartphones was $ 58 billion in 2019, and will more than double to $ 118 billion by next year. Evercore ISI analysts are confident that with Apple’s new privacy policy “Significantly changed the situation”: For this fiscal year, the company will receive $ 5 billion from its advertising business, and within three years this figure will grow to $ 20 billion.

App downloads by ad clickthroughs in percentage terms.  The privacy policy was updated on April 26, 2021 with the release of iOS 14.5

App downloads by ad clickthroughs in percentage terms. The privacy policy was updated on April 26, 2021 with the release of iOS 14.5

Apple’s ad appeal has increased after iPhone users have been blocked from tracking by default and competitors such as Facebook, Google, Snap, Yahoo and Twitter have gone blind. Data on those users who nevertheless allowed advertisers to track their actions have ceased to be provided in real time since April – only in a generalized format and with a 72-hour delay. And only advertisements from Apple itself continued to provide detailed information.

EasyPark parking service has doubled the cost of promoting its app at Apple. Brand head Caroline Letsjö noted that Apple’s new strategy has led to “Record high ad conversion rate”, while the effectiveness of reaching iPhone customers on Google services “Hurt, so we cut our budget”… Facebook said in September that “It has become more difficult to measure [эффективность рекламных] campaigns on our platform “and many players have been more influenced than expected by Apple’s shift in strategy. Following this announcement, Facebook shares fell 4%.

According to Singular, some mobile advertisers, alarmed by the new privacy policy on iPhones, are now spending most of their budget on Android: previously the ratio was 50/50, but by the end of June it had changed to 70.3% on Android and 29.7% on Android. iPhone. Apple insists that the updated privacy policy has been designed to protect users: “These technologies are part of a single end-to-end system designed to help developers implement safe ad practices and protect users, not in Apple’s best interests.”

RELATED TOPICS

About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

Add Comment

Click here to post a comment