{"id":642466,"date":"2023-04-28T10:06:34","date_gmt":"2023-04-28T15:06:34","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/04\/28\/two-years-into-apples-att-ad-tech-still-sees-growth-despite-slowdowns\/"},"modified":"2023-04-28T10:06:34","modified_gmt":"2023-04-28T15:06:34","slug":"two-years-into-apples-att-ad-tech-still-sees-growth-despite-slowdowns","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/04\/28\/two-years-into-apples-att-ad-tech-still-sees-growth-despite-slowdowns\/","title":{"rendered":"Two years into Apple\u2019s ATT, ad-tech still sees growth despite slowdowns"},"content":{"rendered":"

Two years after Apple\u2019s App Tracking Transparency went into effect<\/a>, the framework is looking more like Schr\u00f6dinger\u2019s cat than a total poison pill for ad-tech.<\/p>\n

It\u2019s no secret and no surprise that Apple\u2019s privacy changes have had a major impact on digital advertising. Since going into effect two years ago this week, ATT has cost social networks<\/a> billions of dollars in lost ad revenue, given Apple a potentially major advantage<\/a> for its own ads business, and provided users<\/a> a way to think differently about their data.<\/p>\n

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[ATT] was a master stroke by Apple.<\/p>\n

Gartner analyst Eric Schmitt<\/p>\n<\/p><\/div>\n

When Apple first introduced ATT in 2021 \u2014 a feature of iOS 14.5 and iPadOS 14.5 \u2014 it offered users an easier way to opt out of being tracked by apps with added controls for how companies collect, share and use personal information. However, it also exposed weaknesses in seemingly impenetrable giants like Facebook and Google and created an \u201cexistential crisis\u201d across an industry heavily reliant on third-party data.<\/p>\n

Despite doomsday warnings of how Apple\u2019s changes could cause an implosion of ad-tech, there is still growth. Internet ad revenue grew 10.8% year-over-year to $209.7 billion after growing 35% the year prior, according to the Interactive Advertising Bureau\u2019s 2023 report<\/a> released earlier this month. Even social media grew at a rate of 14%, according to the annual study, which was conducted with the auditing firm PwC.<\/p>\n

\u201cIf you were to ask a small business owner if the hype was overblown, they\u2019d say absolutely not,\u201d said IAB CEO David Cohen. \u201cIs it the doomsday scenario? No. But [it] still inhibits the industry\u2026 There\u2019s a pretty big delta between 35% and 10.8%.\u201d<\/p>\n

Apple hasn\u2019t gone without facing new scrutiny over ATT. Officials in France are reportedly considering antitrust action related to its app tracking changes<\/a>, following similar actions taken by German regulators last year<\/a>. And earlier this week, European Union regulators clarified that Apple\u2019s App Store would be among the 19 tech giants governed under the new Digital Services Act. (For example, the company will be forced to follow the same app tracking transparency rules it\u2019s set for third-party developers.)<\/p>\n

Apple\u2019s changes have been a \u201cvery bright light\u201d on non-consented data use, said Gartner analyst Eric Schmitt, but declining match rates and weakening retargeting have also highlighted broader issues around measurement.<\/p>\n

\u201cCompetitively, it was a master stroke by Apple,\u201d Schmitt said. \u201cThey put themselves in the driver\u2019s seat. They control the narrative of what happens on an Apple device stays on an Apple device. They put Google on the defensive and control the timing because now they have the narrative and can decide when to make the next tweak, [or] tighten up the next parameter.\u201d<\/p>\n

The impact of ATT also continued to be a cloud over corporate earnings, following last year\u2019s slowdown at companies such as Meta, Google and Snap. Others \u2014 such as Nextdoor, Spotify, Groupon and Cars.com \u2014 have all mentioned the potential challenges in their financial disclosures along with ad-tech companies including The Trade Desk, Pubmatic, Magnite, AppLovin and Criteo.<\/p>\n

When asked on Meta\u2019s quarterly earnings call whether the company is getting back to where it was pre-ATT, Meta CFO Susan Li said the company is \u201cmaking progress certainly in mitigating the direct impact\u201d while Meta VP of Finance Chad Heaton said business returning to how things were before ATT is the \u201cwrong way to think about it.\u201d<\/p>\n

\u201cI think ATT is just the new landscape that all digital advertisers, including us, operate in,\u201d Heaton said. \u201cWe\u2019re in this new space. From there our focus is on improving ad performance with investments in onsite objectives and AI.\u201d<\/p>\n

Many companies have tried to develop workarounds, but Schmitt said a frontrunner solution seems even less likely than it did a year ago. If 2022 was all about which alternative ID might prevail<\/a>, 2023 is more about if there will even be one, leading to an \u201calmost existential challenge for advertisers.\u201d<\/p>\n

\u201cMarketers are questioning their open web programmatic budgets and scrutinizing those budgets at a level they haven\u2019t in years past,\u201d he added. \u201cThey\u2019re asking if there are places where those dollars are better spent. That\u2019s the ball that Apple got rolling.\u201d<\/p>\n

Some say the technological shift has also led advertisers to move past mobile to explore other types of advertising such as connected TV, email and gaming across PCs and consoles. The weakening signals have also led some advertisers to shift from performance marketing <\/strong>toward more brand-driven messaging. Some are shifting because they don\u2019t see brand marketing as affected by privacy and consent issues, but others are cutting brand dollars because they\u2019re harder to measure.<\/p>\n

The impact could also be felt in Apple\u2019s own iOS ad inventory not getting filled like it did before ATT went into effect. When video platform Connatix analyzed audience-based buys, it found that iOS traffic makes up just 48% of ad revenue despite iOS devices accounting for 64% of total traffic. On the other hand, Android devices accounted for 52% of ad revenue despite only making up 36% of ad requests.<\/p>\n

Others have seen somewhat of a recovery with iOS devices since ATT went into effect. According to InMobi\u2019s Appsumer data, iOS share of spend fell from around 50% before ATT to 37% in the first few months after it went into effect, but it\u2019s now returned to 50% in recent months.<\/p>\n

Publishers are much more aware of the impact than advertisers, said Connatix head of client success Binda Patel, who added that in-house teams noticed it more than advertisers that outsourced media buying to agencies.<\/p>\n

Opt-in rates of users have been higher than the industry originally expected, said Brian Quinn, U.S. president and GM of AppsFlyer, a mobile analytics provider. However, the average opt-in rate across all industries has ticked downward from 46% after the first year to 45% after the second. Some industries have seen more success, with shopping apps having an 82% opt-in rate.<\/p>\n

\u201cNo doubt we\u2019ve seen a greater exploration in non-mobile platforms,\u201d Quinn said. \u201cIt\u2019s a healthy sign for the industry because it\u2019ll give more publishers on more platforms an ability to help brands find and engage users and it\u2019ll be a more balanced ecosystem moving forward.\u201d<\/p>\n

Some see opt-in rates varying based on how well a company can articulate how and what it tracks and what value it can provide users.<\/strong> For example, when ATT first went into effect, just 18% of users were open opt-in via ATT, according to Airship. However, the company\u2019s survey conducted last year found that the percentage could double when users see some sort of value from the exchange.<\/p>\n

Two years later, there are also still questions about whether iOS users yet fully understand the data they share with companies. According to new research<\/a> this week from the University of Bath School of Management, 43% of users were \u201cconfused or unclear\u201d about what app tracking entails while 51% said they were concerned about privacy or security. However, researchers didn\u2019t find any association between whether users\u2019 concern for privacy led to them allowing less tracking or not.<\/p>\n

Even when users opt-in, other researchers at the University of Oxford<\/a> have found some iOS apps still track users based on the \u201cgrey area\u201d of Apple\u2019s policies while other apps have been found to provide inaccurate transparency about their data policies.<\/p>\n

\u201cThe whole discussion around control is in ways a trap,\u201d said Konrad Kollnig, a privacy researcher and professor who worked on the University of Oxford study. \u201cWho\u2019s in control?\u201d<\/p>\n<\/div>\n

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https:\/\/digiday.com\/?p=501464<\/p>\n<\/p><\/div>\n

Read More<\/a>
\n Marty Swant<\/p>\n","protected":false},"excerpt":{"rendered":"

Two years after Apple\u2019s App Tracking Transparency went into effect, the framework is looking more like Schr\u00f6dinger\u2019s cat than a total poison pill for ad-tech.It\u2019s no secret and no surprise that Apple\u2019s privacy changes have had a major impact on digital advertising. Since going into effect two years ago this week, ATT has cost social<\/p>\n","protected":false},"author":1,"featured_media":642467,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[270,46,725],"tags":[],"class_list":{"0":"post-642466","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-apples","8":"category-technology","9":"category-years"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/642466","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=642466"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/642466\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/642467"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=642466"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=642466"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=642466"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}