Apple's App Tracking Transparency is available on iOS for a long time now. The framework basically asks users if they want apps to track their data and information across different apps and websites. While the feature was heavily criticized by companies that handle targetted ads, Apple made sure that the feature was made available to the public. Now, advertisers are spending significantly more money targeting Android users instead of iOS.
Advertisers Are Spending Significantly More on Android to Target Their Ads All Thanks to Apple's App Tracking Transparency
As mentioned earlier, Apple's App Tracking Transparency has pushed advertisers to spend more money targeting Android users instead of iOS. According to The Wall Street Journal, advertisers have lowered their spending on Apple's platform in favor of Android.
Early data from the Branch Metrics shows that less than 33 percent of iOS users have permitted apps to track user data across other apps. the rest of the users have opted out of the scene. Ultimately, this has shifted advertisers' interest to spend more on Android instead of iOS due to the addition of App Tracking Transparency. To be precise, the spending has dripped by almost one-third between June 1 and July 1. In addition, spending on Android increased by 10 percent in the same time frame, according to Tenjin Inc.
After the tracking change took effect in April, many users of Apple's iOS operating system have received a high volume of prompts from apps asking permission to track them—requests that most have declined. Less than 33% of iOS users opt in to tracking, according to ad-measurement firm Branch Metrics Inc.
As more of that information has emerged, advertisers have adjusted their buying strategies. Spending on iOS mobile advertising has fallen by about one-third between June 1 and July 1, according to ad-measurement firm Tenjin Inc. Android spending rose 10% over the same period, Tenjin said.
Digital-ad agency Tinuiti Inc. has seen a similar pattern in its clients' spending, research director Andy Taylor said. When iOS users opted out of tracking, Tinuiti advertisers couldn't bid on them, he said. That dearth of iOS users drove up demand—and ad prices—for Android users. About 72.8% of smartphones world-wide use the Android operating system, and about 26.4% use iOS, according to Statcounter.
Digital advertisers coin that one of the reasons why they are spending less on iOS is due to the limited availability of the "granular data that made mobile ads on iOS devices effective and justified their prices." Since advertisers now have less amount of user data pertaining to their interests and preferences, they cannot target ads with the same amount of accuracy. This is something that Apple has prevented advertisers through its App Tracking Transparency.
Digital advertisers say they have lost much of the granular data that made mobile ads on iOS devices effective and justified their prices. In recent months, ad-buyers have deployed their iOS ad spending in much less targeted ways than were previously possible, marketers and ad-tech companies say. The shortage of user data to fuel Facebook Inc.'s suite of powerful ad-targeting tools reduces their effectiveness and appeal among some advertisers, ad agencies say
Facebook has criticized Apple's App Tracking Transparency feature since the very start. Since Facebook's revenue depends on ads, it was the most resistant to the change. Nonetheless, Apple delayed the initial rollout of the ATT framework so developers could prepare themselves for the shift.
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