"We believe the impact of iOS overall is a headwind on our business in 2022," Meta CFO Dave Wehner said on a call with analysts after the company's fourth-quarter earnings report.
9.From Kif Leswing's " Facebook says Apple iOS privacy change will result in $10 billion revenue hit this year" posted Wednesday on CNBC:įacebook parent Meta said on Wednesday that the privacy change Apple made to its iOS operating system last year will decrease the social media company's sales this year by about $10 billion.Patently Extra News - Industry News+ (2050) For more on this, read the opinion piece by Brooke Masters found on the Financial Times. The Financial Times report goes on to quote Shoshana Zuboff, author of The Age of Surveillance Capitalism, who thinks that "governments should ban the collection of personal data and the sale of advertising and other products based on it." That seems extreme, but it is clear that a hands-off approach is no longer tenable. Apple Legal describes it this way: " Our advertising platform doesn’t share personally identifiable information with third parties." Yet the difference is clear between Apple and Google. The services business, which includes advertising, set records this quarter for both revenue of $18.3bn and profit margin of 70.5 per cent." Like Google, it gathers granular data directly and its ad business has gained market share as rivals struggle. There is also something unsavory about the way these changes have boosted Apple’s profits. If Apple customers were genuinely unconcerned about tracking, they would not be saying no. The $400bn digital advertising market has historically relied on an intrusive and unpopular business model. In some ways, the companies damaged by the privacy rules have only themselves to blame. This has hit Facebook (or Meta as it has renamed itself) and Snap particularly hard. Advertisers are shifting their spending elsewhere.
Since then, most people have opted out, making it harder for the platforms to target audiences. Snap’s shares promptly dropped by more than a quarter.įacebook, Twitter, YouTube and Snap have seen an estimated $9.85bn in expected advertising revenue vanish since April, when Apple started requiring app developers to seek explicit permission to track users for advertising purposes. The Financial Times writes that Spiegel added that the rules had "upended" the digital advertising industry, he said this month, causing a "frustrating setback" that would push revenue from the Snapchat app well below expectations. He sounded genuinely beleaguered as he explained that Apple’s new privacy policy (App Transparency Tracking feature, was wreaking havoc on his business.
In mid-October Snap chief executive Evan Spiegel noted that the company was caught off guard by how disruptive the impact on advertiser tools proved to be.
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