It seems almost obvious, because of the number of times it has been repeated and because of the analysis that it has starred in: one of the great changes of the year with great effects on the advertising industry has been the privacy adjustment that Apple has launched.
In the latest version of its mobile operating system, the one used by both its iPhones and iPads, the company limits what apps can do to access consumer data. Only if they have given their explicit yes, applications will be able to track data. If not, the amount of information they can accumulate will be very limited.
From the outset, the advertising industry and some major players have shouted to the sky, complaining about the situation, which they consider an abuse of power by Apple. Since the amount of information they can process is limited, a brake is put on how much data they can use to segment advertising.
This has a direct impact on your line of business and your advertising revenue. But how much money has the advertising industry been losing in recent months due to these changes? Some accounts have already estimated how much some specific players have lost , such as Facebook, but the latest estimates are based on more historical data and already give quite overwhelming statistics.
Only the big players in the advertising market have already lost almost $ 10 billion in advertising revenue. That is the figure that the Financial Times has calculated and that starts only from the data of four advertising giants. The broadest data, the most real, of what happens with the entire global advertising landscape are much more difficult to achieve, but taking this figure into account it can be assumed that they are very high. Just the sum of what Facebook, Twitter, Snap and YouTube have lost stands at $ 9.85 billion.
They are, according to the accounts of the Financial Times , the income that these players should have had and that have evaporated due to Apple’s privacy regulations during the second half of the year. Statistics from Lotame, an advertising technology company, suggest that the four giants would have lost 12% of their revenues in both the third and fourth quarters due to this movement. The FT accounts thus allow you to extract that billion dollar amount of lost income.
The big losers
Facebook is the one who has lost the most in absolute terms, but Snap is for whom the situation is more painful, because its size is smaller and the blow to its waterline is the hardest. In addition, the problem is not only in losing that data, but in the domino effect that the situation can have.
As an expert explains to the economic newspaper, Facebook has been raising prices in recent years. If their ability to segment plummets, nothing will stop advertisers from escaping to cheaper, more emerging sites like TikTok. “Spending is not falling, it is moving,” warns another expert.