This can be attributed to Apple’s privacy change in the App Store called the App Tracking Transparency (ATT) update. iOS 2021 privacy update made it difficult for companies like Facebook to track users across the internet
Apple appears to be gaining momentum in digital ads, giving Google and Facebook good competition, according to research published by performance analytics platform Appsumer on Tuesday (September 6).
This can be attributed to Apple’s privacy change in the App Store called the App Tracking Transparency (ATT) update. The iOS 2021 privacy update made it difficult for companies like Facebook to track users across the internet. This helped the company break the duopoly of Google and Facebook in the advertising industry.
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Apple, through its search ads, allows users to advertise on the Apple App Store. According to Appsumer, Apple’s ad adoption rate year-on-year increased nearly 4% to 94.8%, while Facebook’s adoption rate fell 3% to 82.8%. Google’s rate fell two percentage points to 94.8%.
Reasons for increased adoption rate
First, a number of app developers are willing to pay huge sums of money to Apple to boost their downloads from the Apple App Store.
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Second, the company’s App Tracking Transparency (ATT) update limits the amount of user data accessible by ad-based apps like Facebook. This hinders Facebook’s ability to help brands with their online ad campaigns, giving Apple an edge in the ad business.
Shumel Lais, Managing Director of Appsumer, revealed to the media, “One of the pretty interesting things is that the ATT metering limitations that are sort of imposed on the larger network don’t exist the same way for Apple. So, you could say that Apple has a bit more visibility or an advantage over other channels on iOS.
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The total money app developers spend on online advertising is known as share of wallet. In terms of wallet share, Google remains in the lead with 34% share. Facebook comes next with a 28% share. Apple follows with 15% of the shares.
Facebook benefits from ad serendipity, unlike Google and Apple, which serve ads based on search terms, Shumel Lais said.