Apple’s Privacy Rules Leave DTC Companies Scrambling
Easy Out
Apple (APPL) launched a privacy initiative about a year ago which aims to give users of the company’s products an easy way to avoid having their digital activity tracked. With the policy change, apps that want to follow you online will have to ask you first.
The upgraded privacy feature means users are no longer required to control trackers, which used to be more difficult. The move may be applauded by users, but for companies that relied on the practice to identify their target markets, having their view-in blocked was a blow.
Meta’s Popularity Wanes
Direct-to-consumer startups in particular were adversely affected, as their ability to focus ads on well-matched potential customers is now more limited. The smaller companies who lack the marketing budget and name recognition to support alternative ad campaigns have been hit hard.
In response to Apple’s policy changes, some of these companies are cutting their ad spend on Meta Platform’s (FB) Facebook and Instagram. TikTok, LinkedIn (MSFT), original website content, and even influencers are being leaned on instead to attract consumers’ attention.
Some Upside
Market observers contend the shift isn’t all bad news for these companies. There is the potential that ads will be less diluted and more effective if consumers are less likely to encounter them.
However, as companies shift to a new mode of marketing, they may find their budgets stretched. All while their campaigns are less effective. In the meantime, while Meta’s revenue growth has been slowing, it remains king of the online advertising market.
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 Adviser
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.
SOSS22060801
All your finances.
All in one app.
App Store rating
