When Apple released its app tracking transparency feature, social media platforms like Facebook raised concerns, saying it could hurt their advertising revenue. It turns out that these companies’ concerns were justified because, according to a report by the Financial Times (Paywall) the feature is said to have cost these companies up to $ 10 billion.
This is evident from the advertising technology company Lotame, who spoke to the publication. According to Lotame, they announced that ad revenue for Facebook, YouTube, Twitter and Snap fell as much as 12% in the third and fourth quarters, which are said to have been worth $ 9.85 billion.
Mike Woosley, COO of Lotame, also points out that the feature made advertising less effective. He points to an example of an underwear brand that is usually aimed at men. The company used to spend $ 5 on an ad targeted at 1,000 men, but due to the anti-tracking feature that basically obscures the user’s information, companies had to spend twice as much because they didn’t know whether the 1,000 people they are re-targeting are men.
So you would have to reach 2,000 people now, hoping that at least 50% of those people would be your target audience. That being said, it’s interesting that this report shows how effective the feature is, while earlier this month a study actually suggested the anti-tracking tool was a dud.
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