According to the BGR report, the iOS 14.5 update should be launched soon, because, in the past few weeks, Apple has conducted extensive testing of the software through several beta versions. The new version should add several new features, including the highly anticipated application tracking transparency (ATT) privacy feature, which will force all application developers to obtain permission before tracking users online.
The move triggered protests from Facebook, one of the companies that earn most of its money from online advertising. The ability to track users is essential for providing personalized advertising and monitoring the performance of these activities. Facebook claims that Apple’s new privacy features will harm free networks and small businesses. It has launched its own advertising campaign, requiring users to continue to allow it to track users after the launch of iOS 14.5.
Apple has repeatedly explained that the new privacy features will not prevent developers from tracking users. But ATT requires applications to obtain permission and explain the purpose of collecting data. A new survey shows that once the app starts asking, more than two-thirds of iPhone users will block ad tracking.
The survey comes from AppsFlyer, a mobile marketing company and attribution company that analyzed about 300 applications on 2,000 devices. According to AdWeek reports, the data shows that the median selection rate will be 32%, which means that 68% of users will not allow apps to track them.
This percentage may vary from application to application. Services with higher consumer affinity will get a higher selection rate, but even these services will hover around 40%, which means that users are likely to accept Apple’s new privacy features. Other apps may be more affected. The dating app Bumble disclosed in the S-1 document that the proportion of opt-in is expected to be between 0-20%.
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Users who opt-out of tracking will prevent developers from using their IDFA, which is a unique identifier that allows tracking. This will prevent advertising companies from measuring the performance of their online advertising. Advertisers will not know which customers have seen which ads.
Digital advertising company Trade Desk said that 10% of the 12 million advertising opportunities per second on its platform are tied to IDFA. If the opt-out rate is high, publishers can expect in-app CPM or cost per thousand impressions to drop by 50%. AdWeek explained that once the CPM drops, the cost of each acquisition will also decrease.
Building other trackers would violate Apple’s rules and may cause Apple to refuse to apply updates. The company recently confirmed this when some apps that use third-party trackers were refused updates. Developers still need to obtain permission to track users.
According to the forecast of analyst Eric Seufert, Facebook’s revenue may be affected by 7%. According to a report by Advertiser Cognition, 58% of advertisers expect to shift part of the majority of their budget from Apple’s ecosystem to Android and connected TVs.
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