What’s The ATT?
Last year, Apple (AAPL) launched a new privacy feature called App Tracking Transparency, also known as ATT, which was a huge digital privacy win for consumers.
This feature required apps like Facebook (META) and Twitter (TWTR) to ask for user’s permission in order to track their activity across different apps or websites. In other words, it gave consumers an easy way to get more digital privacy. The ATT feature has been incredibly popular, with approximately 75% of users opting in.
Tracking and understanding user behavior is one of the main ways big advertisers like Meta (META) and Google (GOOGL) are able to show such highly-targeted ads. Apple’s push for consumer privacy is directly cutting into these companies’ revenues.
Big Advertising’s Response
Some of the world’s most popular tech giants like Google, Facebook, Snapchat (SNAP), and Twitter are losing out on ad revenue due to this update by Apple. According to Forbes, Facebook lost about $12.8 billion in ad revenue this year, while YouTube will lose $2.2 billion, Snap will lose $546 million, and Twitter will lose $323 million.
In addition, this new ad update hurt some small businesses, who often rely on targeted Facebook and Google ads to acquire new customers.
All About Consumer Privacy?
The new privacy update is a win-win for Apple, simultaneously championing digital privacy and benefitting its own ad business.
The adoption of Apple Search Ads has risen 4% year-over-year, while Facebook and Google ad usage both decreased. Its market share also increased by 5% to 15% among advertisers. On top of that, Apple is doubling down on the size of its ad business by hiring 216 new employees.
Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.