A lot of SMBs are losing money as a result of Apple’s privacy measures

Reportedly, Apple’s substantial modifications to its privacy laws have hurt several local firms.

With the introduction of iOS 14.5 came a new feature called App Monitoring Transparency (ATT), which let users to opt out of app tracking across third-party applications and websites.

According to a poll conducted by software company Varos of more than 1,300 organisations, this led to a decline in revenue of 13% in the second quarter of 2022 for companies who employed these targeted mobile advertisements to recruit new clients.

So, how exactly does this function?

App developers and publishers had unrestricted access to users’ private information before this functionality was implemented.

There were legal ways this might improve app performance, such as by offering location-based recommendations, but it also opened the door for publishers and marketers to sell user data to unauthorised parties.

But there has been some debate regarding the implementation of ATT. Germany’s Federal Cartel Office, the Bundeskartellamt, is looking into whether Apple’s implementation of the new regulations constitutes self-preferencing as part of an antitrust complaint.

Apple, meanwhile, commissioned a study (opens in new tab) that revealed (perhaps predictably) that the company had not benefited financially from the new regulations.

Since Apple Search Ads represents such a small share of the overall mobile advertising market, and since displaced advertising spending could go to many other companies that effectively leverage first-party data for advertising, the report concluded that “Apple is unlikely to have significantly benefited from ATT.”

Potentially far-reaching effects of Apple’s modifications to data sharing across its devices are possible.

By the end of 2023, Google plans to eliminate all third-party cookies from Chrome.

Want to tweak some options?

Visit the “Settings” menu on your iPhone, and then choose “Privacy” to modify your data collection preferences.

Select “Tracking” from the menu at the top of the screen to activate or stop tracking for each app separately.