In the coming months, Apple will implement the expected (and feared) privacy policy of “application tracking transparency“, Which will allow users decide if they agree your data to be tracked by apps and websites. In practice, the measure makes tracking more difficult for companies that bill with targeted advertising.

App Tracking Transparency (ATT) will require applications to trigger a pop-up notification saying the software “would like permission to track you on aplicativos and websites owned by other companies ”. The novelty would come with the launch of iOS 14, iPadOS14 and tvOS14, but has been delayed to give developers more time.

advertising

The biggest losers will be data brokers - companies that collect, store, process, buy and sell user data. They aggregate thousands of information to create consumer profiles that can be used for targeted advertising. A privacy report published by Apple mentions data brokers that collect data from 700 million users worldwide, building profiles that include up to XNUMX characteristics.

App Store Screen
Applications that do not comply with the new Apple rules will be removed from the App Store starting in 2021. Image: ParampreetChanana / Pixabay

Advertising technology companies, social media and other platforms also collect large amounts of information from users. According to Apple, an average application has six trackers, which in most cases allow third parties to collect and link data from many different sources.

In other words, even using a single application, the user assigns data to several different databases, often without their knowledge. Apple wants people to be able to choose whether to allow apps to collect this data, and will display in the device's settings which apps have requested tracking permission.

Market reacts to changes in Apple's privacy terms

The change in privacy policy, however, has been criticized by other companies. THE Facebook, for example, described the tool as potentially harmful to small businesses, while indirectly benefiting Apple itself.

For a long time, Apple provided apps with a unique identifier, known as “Identifier for Advertisers” (IDFA), which allowed app makers and ad networks to track user activities, using their data to target products. But now, the company will require applications to show users a pop-up message to obtain their consent to access their IDFA.

Facebook's vice president of ads and business products, Dan Levy, argued that many businesses rely on advertising to make money, and that small businesses could end up cutting sales by more than 60% without personalized ads.

Without advertising funds, developers may also be unable to provide free applications - and will have to resort to subscription-based models. For Levy, this will ultimately increase Apple's profits. According to Eric Seufert, a specialist in user acquisition, Facebook could suffer a 7% impact on revenue - a loss of tens of billions of dollars - as a result of the changes.

Billing impact

"Apple can say that it is doing this to help people, but the measures clearly target their competitive interests," said Facebook CEO Mark Zuckerberg. The social network intends to bring justice, arguing that Apple forces app developers to accept the App Store rules, but does not do the same with its own apps.

Mark Zuuckerberg, Facebook CEO. Image: Frederic Legrand / Shutterstock

"Changes to Apple's ATT will reduce the visibility of key metrics that show how ads drive conversions (such as installs and app sales) and affect how advertisers price ad impressions," explained Google Ads product manager, Christophe Combette . "In this way, app advertisers can have a significant impact on their Google ad revenue on iOS after the policies go into effect," he added. official statement.

To help improve iOS monetization rates, Combette advised that developers should upgrade to version 7.64 of the Google Mobile Ads SDK for new features like SKAdNetwork, which is Apple's replacement for targeted IDFA ads.

"We also encourage advertisers to monitor the performance and delivery of all iOS app campaigns and, if necessary, make adjustments to budgets to achieve their goals," added the Google executive.

Street: ZDNet/VentureBeat/Reuters