Tech

Apple’s ad growth appears to have tripled since the introduction of its app tracking transparency rules.

In the context: Facebook has predicted an “adocalypse” will occur after Apple starts implementing transparency in app tracking earlier this year. I don’t know if this is actually the case, as ad-supported apps are still flooding me with ads that don’t seem to be any different. However, one analyst firm says Apple has benefited greatly from the new ATT regulations.

Apple advertising platform on devices Search ads, reserves space for developers at the top of App Store searches to advertise their apps in relevant search results. For example, when searching for Telegram, a user may come across a paid Twitter banner at the top of the results page (below).

The Financial Times notes that data from the analyst firm Branch indicates Apple’s mobile advertising market share has tripled over the past year. A year ago, search ads accounted for a paltry 17 percent of the iPhone ad market. As of last month, it had a controlling share of 58 percent, with most of this growth coming from the previous six months.

“It looks like Apple Search Ads has gone from playing in the minor leagues to winning the World Series in six months,” said Alex Bauer, head of product marketing.

Analyst group Evercore ISI predicts that Apple’s advertising platform is likely to generate $ 5 billion in fiscal 2021. Researchers see growth in the next three years reaching $ 20 billion a year.

“[Apple’s privacy push] made a big difference, “says Evercore.

Apple began requiring developers to ask users for permission to collect and use their data for ad targeting earlier this year after a nearly four-month delay. As expected, many users have opted out of tracking in most apps. As a result, Facebook’s “Audience Network” and Google Ads were seriously hampered when users began to deny tracking permissions.

The Financial Times suggests that it was this massive exodus that led to a sharp increase in Apple’s advertising. However, this can be a little exaggerated. First, the Apple Search Ads platform is an exclusive feature of the App Store and does not advertise itself in its apps.

In addition, analyst Eric Seufert points out that the data fork used in his analysis is excludes gaming applications, the dominant subsector of the broader application market. He mentions that Branch was only looking at “mobile app ad spend, not mobile ad spend,” further skewing the analysis. The actual values ​​used in the study are also unknown.

“This data is presented as a percentage of the total attributed installations,” Seufert said. “Given that these numbers are percentages, not absolute numbers, the overall size of the iOS install market is an important consideration that is omitted here, ie, if the overall market shrinks, an increase in Apple’s share may not indicate an increase in revenue or scale.”

Seufert said that without hard numbers, it is difficult to put research into context. In other words, Apple’s advertising growth was at least partly due to the overall market contraction caused by the new transparency rules.

Indeed, several mobile advertisers have adjusted their ad budgets in favor of the Android platform. Singular analysts say that by early 2021, ads between the Android and iPhone markets were split almost 50/50. As of June, the money spent on advertising is currently 70.3% in favor of Android versus 29.7%.

Thus, without knowing the absolute values ​​used to calculate these percentages, it is difficult to determine how much of the market share that tripled in the market share of search advertising was actually growing.


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