A new report says that Apple and its controversial privacy changes on iOS may have helped to break open Google and Facebook’s duopoly on advertising.
A new report from Appsumer shared by CNBC (opens in new tab) has revealed that Apple’s changes to privacy on iOS 14 have dented Google and Facebook’s stranglehold on the advertising business while boosting its own fortunes.
The research conducted is based on the online ad budgets of more than 100 different consumer app companies.
Joined the duopoly
According to today’s report “Apple’s ad business has benefited from the company’s major iOS privacy update in 2021.”
Appsumer claims that Apple has “joined the duopoly of Facebook and Google at the top table of advertiser adoption” registering adoption figures of 94.8%, up four points year on year, the same as Google and far more than Facebook which fell to 82.8%.
The figures mean that more advertisers are turning to Apple to spend their marketing budgets, rather than Google and Facebook. This is in part because of App Tracking Transparency, which from last year has allowed users on devices like the iPhone to opt-out of tracking using an IDFA number across multiple apps and services, a key tool used by Facebook to provide targeted and more effective advertising.
The development has raised competition issues, with some, including Appsumer’s GM Shumel Lais suggesting Apple has an unfair advantage against third parties on its platform because it can see and leverage more data to make its advertising more effective.
Apple still pales compared to Google and Facebook in terms of overall app developer spending on online advertising, Google and Facebook to 34% and 28% respectively, with Apple only taking 15%. This 28% figure for Facebook shows “signs of recovery” for the company, which has complained vocally about Apple’s changes.