Apple’s push for user privacy is costing social media companies $10 billion and counting, including YouTube, Snap, Twitter and Facebook for the 2nd half of 2021.
In April 2021 App Tracking Transparency was released so users could make a choice to retain their privacy as they used apps. In just 6 months advertising revenue for the top social media advertisers have fallen at a significant amount.
Snap, Twitter, YouTube and Facebook have reported a 12 percent deficit in the 3rd and 4th quarter, totaling $9.85 billion. Facebook experienced the biggest drop, with an estimated figure of $8 billion. Mike Woosley, COO of Lotame mentioned that advertisers are not getting any response from iPhone as most have decided to opt out.
David Wehner, Facebook CFO said that App Tracking Transparency is ‘challenging’ and more disruptive than initially anticipated. Apple saw its internal ad business improve, with Services gaining $18.3 billion last quarter.