How Apple’s new privateness coverage modifications have price different social media platforms $10 billion

As a result of Apple’s iOS privacy changes, technology forms like Snapchat, Instagram, Facebook, and Youtube have spent nearly $ 9.85 billion in sales, the Financial Times researched and revealed.

According to Lotame, a company specializing in advertising technology, the four social media platforms lost 12% of their revenues in the third and fourth quarters. This comes after the new iOS App Store policy, which requires developers to obtain permission to track user data across multiple apps and websites.

The regulation went into effect in April banning applications from monitoring users who log out. “If you (app developer) do not get permission from the user to activate the tracking, the value of the advertising identifier of the device will be all zeros and you will not be able to track them,” Apple said in a statement to the app store developers .

Facebook criticized Apple’s new approach when it was launched, claiming that it is becoming more expensive for ad networks to target customers, harming small businesses that rely on focused ad campaigns. Full-page ads were also posted on Facebook denouncing Apple’s new privacy policy.

It was stated by Facebook’s Chief Operating Officer Sheryl Sandberg that the improvements in iOS 14, which benefited Apple’s own advertising business, had the biggest impact on them. “One of them is that the accuracy of our ad targeting decreased, which increased the cost of increasing results for our advertisers. And the other is that measuring those results has become more difficult. ”According to a story published by The Information, the new regulation will affect less than 5% of Facebook’s $ 84 billion annual advertising revenue.

Adtech consultant Eric Seufert said, “Some of the hardest hit platforms – Facebook in particular – are having to rebuild their machines from scratch because of ATT.”