Social media platforms lost nearly $10 billion after Apple’s App Tracking Transparency Policy

Social media platforms lost nearly $10 billion after Apple's App Tracking Transparency Policy

Apple’s App Tracking Transparency Policy, which compels users to give applications permission to watch their online activity, cost social networking apps such as Snapchat, Facebook, Twitter, and YouTube approximately $10 billion in revenue according to an online research. Because of its scale, Facebook lost the most money in absolute terms when compared to other social media platforms. According to the survey, Snapchat fared the worst as a percentage of its business since advertising is tied to a smartphone.

Apple’s App Tracking Transparency allows users to choose whether an app can follow their online and iPhone activities and use the obtained data to serve personalized ads. Prior to iOS 14.5, app tracking was enabled by default. According to Apple Insider, Apple’s App Tracking Transparency made its way to many social networking platforms in April.

Lotame, a data collecting company focusing on ad technology, informed the Financial Times that income for Facebook, Snap, YouTube, and Twitter had dropped significantly. The data management organization observed that social networking applications experienced a 12% reduction. According to Financial Express, the revenue loss for social media apps was $9.85 billion.

Earlier this month, Facebook CEO Mark Zuckerberg underlined that Apple’s policies had harmed not only Facebook but also millions of small businesses. Zuckerberg has earlier noted that Facebook had faced revenue challenges as a result of Apple’s App Tracking transparency and its influence on the advertising sector. He noted that the iOS privacy features mentioned have an impact on small enterprises that rely on ad platforms during difficult times.

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