Apple’s privacy policy cost social media platforms USD 10 Bn: Report

Apple’s changes to its privacy policy has cost social media platforms like Snapchat, Twitter, Facebook, and YouTube nearly USD 9.85 billion in revenue, according to a report published by the Financial Times.

For those unaware, Apple had announced the App Tracking Transparency (ATT) policy last year, that requires apps to seek permission to track user data. The policy essentially disallows apps from tracking users if they chose to opt out from revealing usage information.

Apple's App Tracking Transparency (ATT) policy has been one of the most contentious issues related to privacy changes that has happened this year. It also compelled various social media companies to raise concerns about Apple’s privacy reforms as it could severely impact their ad businesses.

For instance, Facebook severely criticized the move, as it would lead to substantial loss in revenue for the social media giant that primarily relies on ad business as compared to other social media platforms. Meanwhile, Snap Inc. managed to fare the worst as its advertising is mainly linked to smartphones.

Some experts believe that some of the platforms that felt a greater impact, mainly Facebook, have to are now required to rebuild their business model from the beginning.

It would require at least one year to build a new infrastructure using innovative tools and afresh frameworks, experts claimed. Companies that heavily rely on ad business would also have to conduct a wide array of tests before being brought into service for a large number of users.

Apple’s new policy has pushed social media platforms as well as other apps to get more innovative and creative with their advertising. That also involves emphasizing on Android devices or investing in Apple’s advertising business, which notably violates its own rules by silently collecting user data.

Essentially, social media platforms are now compelled to discover different sources of revenue which will not involve tracking users on their iPhones.

Source Credits:

https://www.theverge.com/2021/10/31/22756135/apple-app-tracking-transparency-policy-snapchat-facebook-twitter-youtube-lose-10-billion