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Apple’s user privacy controls damage Facebook’s ad tracking biz

Thursday February 3, 2022. 03:08 PM , from Mac Daily News
On Wednesday, Facebook owner Meta Platforms posted disastrous quarterly results, blaming privacy safeguards for users from Apple (App Tracking Transparency) that made it tougher for advertisers.

Danielle Kaye for Reuters:

“Facebook continues to see that impact of what it means to be built on top of Apple,” [Gene Munster of investment firm Loup Ventures] said, noting that Apple’s privacy changes have had a bigger impact on Facebook than he expected.
Meta’s revenue and forecast misses sent the social media company’s shares down 20% in after-hours trade on Wednesday, upending a sector-wide positive outlook on the results from Apple and Alphabet. The after-hours slump in Meta shares vaporized $200 billion worth of its market value, and peers Twitter Inc, Snap Inc, and Pinterest Inc saw $15 billion in lost value.
Scott Kessler of Third Bridge [said that] Apple’s change to its operations system in the middle of last year, said, would hit much of the mobile advertising world in 2022.
Apple allowed users to block some tracking of their internet use, which has made it harder for brands to target and measure their ads on Facebook and Instagram, which is also owned by Meta. Meta CFO David Wehner said on a conference call with analysts that the impact from Apple’s privacy changes could be “in the order of $10 billion” for 2022.
While Meta said macroeconomic issues like supply-chain disruptions and inflation contributed to the earnings miss, factors which could have far-reaching effects, analysts and investors focused their punishment on social media.
“I don’t think it turns around the current relief rally we are seeing in the tech space,” said analyst Robert Pavlik of Dakota Wealth Management, after Meta’s results. But there could be an impact on some advertising-supported companies, he said.

MacDailyNews Take: Good.
The online advertising market will have to adjust. People, for the most part, don’t want to be tracked by advertisers.
If advertisers want to reach prospective customers, the old way – that preserves user privacy – still works: You can find them by interest on sites that focus on specific topics. (Hint, hint.)
The fact that Apple’s giving people the choice to be tracked or not via App Tracking Transparency hurts Facebook et al. not only highlights the inherent flaw in the business model of these societal cancers, it makes us laugh.
https://macdailynews.com/2022/02/03/apples-user-privacy-controls-damage-facebooks-ad-tracking-biz/
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