Apple Privacy Day Privacy LogoSource: Apple

What you need to know

  • Apple's iOS 14 App Tracking Transparency changes are having a big impact on ad spending.
  • One report says that ad prices have already dropped by 10%.
  • It could cost the industry billions if the trend continues.

A new report says that iOS 14 tracking changes could cost the advertising revenue billions if an early trend in spending decline continues.

From The Independent:

Apple's recent privacy crackdown has dealt a major blow to advertisers and app developers, with spending on ads dropping as users embrace the iPhone maker's anti-tracking features. Advertising company Blis said that the cost of adverts had dropped by 11pc in cases where users had blocked companies from tracking their activity across different apps.

The report says the downturn has been "more pronounced" in some countries, apparently in the UK the average cost of adverts has fallen by 36%, saying a sustained decline "would knock billions off" the industry.

Apple introduced iOS 14.5 to the public in April, allowing users to opt-in or out of tracking across multiple apps and websites by companies using an IDFA identifier.

Research conducted by iMore in April suggests that only 2% of iOS users will select the 'allow' option when it comes to tracking. Some (22%) it would depend on which app was asking the question, but a staggering 71.6% of users said they would be opting out of tracking.

Facebook has been a vocal critic of the move stating it will harm small businesses that rely on advertising to reach customers.

A new report says that Apple may be upping the ante on its own advertising services used on the App Store, where developers can pay to have their apps advertised in the search tab on the App Store.