Apple Privacy Rule Cost Tech Titans Estimated $9.85 Billion in Revenue

In a huge blow to social media giants, Apple introduced new privacy tools last week that require applications from Facebook, Twitter and more before they can track your internet activity.

The Financial Times reported on Sunday this has resulted in an estimated loss of $9.85 billion revenue for these companies – with some estimating it could be as high as 20%.

A lot is at stake here: not just data mining ads or scraping personal information but also users’ trust!

When eMarketer analyst Yoram Wurser looked into the validity of Lotame’s numbers, his doubts were assuaged only slightly.

“The nine billion is a bit high,” he told us in an interview last week

Before adding that it was possible for these losses to have been as high or even higher than reported depending on how advertisers are using social media ads today and if those campaigns will still be effective when run against other types content such as video clips from YouTube stars with large followings like PewDiePie who has over 50 million subscribers.
“What worries me more at this point?” said Mr Wurser later during our call discussing digital advertising trends across Europe .

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Negotiating Headwinds

Sheryl Sandberg, Facebook’s Chief Operating Officer (COO) during an earnings call acknowledged that Apple had created some “headwinds” for the social network by its actions.

The company is estimated to depend on advertising revenue from targeted ads which makes up 98%+ of total annual income according to reports in October 2018 news outlets such as cnet and bloomberg .

For example , it was claimed at time Q3 revenues were lower due mainly because iOS 14 changes made other companies’ products less attractive or even obsolete depending on their business model compared with apps being developed exclusively through apple platform – but now there are new challenges.

Living Off Targeted Ads

One reason YouTube and Facebook are so successful is because they can provide advertisers with targeting data, much like the way Google does.

But when consumers sign up for this kind of tracking under Apple’s guidelines it becomes less profitable as there isn’t enough information available about where people go outside these sites or app downloads from them.

Which makes advertising more difficult overall in comparison to other platforms that have access all your user behavior without an opt out option

This is further indication that most stakeholders are aware of the fact not many people want targeted ads.

This includes social media platforms, smartphone OEMs and marketers who can all take transparent action to create a business worth billions in revenue together.

Business Basics

Apple’s new privacy policy has not only had an impact on the targeted ad business but it is also beneficial for consumers.

Because of this, Apple should be commended in their transparency with information and opt-out options while maintaining user choice which many companies are lacking these days.

Menting continued by saying “The benefits to individuals will far outweigh any negatives associated with tracking behaviors,”

Noting that people want ads they can actually see when browsing online or mobile devices rather than being tracked without knowledge each time they visit your site/app stores etc.

Therefore giving them more control over how much data gets collected about themselves through cookies used on sites visited frequently.

Impact on Developers

Apple’s new privacy policy has not only had an impact on the targeted ad business but it is also beneficial for consumers.

Because of this, Apple should be commended in their transparency with information and opt-out options while maintaining user choice which many companies are lacking these days.

Menting continued by saying “The benefits to individuals will far outweigh any negatives associated with tracking behaviors,”

Noting that people want ads they can actually see when browsing online or mobile devices rather than being tracked without knowledge each time they visit your site/app stores etc.

Therefore giving them more control over how much data gets collected about themselves through cookies used on sites visited frequently.