Apple is set to release a major update to its iPhone software sometime in mid-2021, as part of its campaign for better user privacy. However, digital advertisers are bracing themselves for the changes that might increase the company’s hold on the app market.
The update, dubbed App Tracking Transparency (ATT), will force any app maker to acquire permission from users before they can activate an IDFA (identifier for advertisers), which is used for targeted mobile ads and metrics.
A lot of users are expected to say no
While Apple has insisted that this change is about user privacy, digital advertising professionals have noted that the changes could lead to app makers having a harder time drawing people in via in-app ads. In turn, this gives Apple the chance to further control which apps customers go for via their app stores.
The move could also boost Apple Search Ads, which are directly inside the company’s App Store.
Brian Bowman, the CEO of digital ad firm Consumer Acquisition, noted that Apple has managed to stake the moral high ground with claims of user privacy, but the fact of the matter is, these changes are huge for the advertising side of their app store, which is why the people invested in king kong agency reviews and the like have been watching so closely. They noted that this was something Apple basically conceded to Facebook and Google, and these changes could very well be a chance for Apple to get back control.
Apple reports its App Store and its ad business as part of its services businesses, which managed to generate total revenue of $53.8bn in FY2020, which is a 16% increase from FY2019.