Apple released iOS 14.5, which included Transparency in App Tracking, in April. It enables users to prohibit third-party apps from obtaining personally identifiable information. As a result, according to The Wall Street Journal, advertisers have reportedly lowered their ad expenditure on Apple platforms while considerably increasing their spending on Android user data.
According to research firm Branch Metrics, less than 33% of iOS users have permitted applications to track their behavior. As a result, between June 1 and July 1 this year, advertisers’ spending on the Apple mobile platform plummeted by around a third. During the same month, their ad expenditure for Android users increased by more than 10%. Due to the difficulty in obtaining data from iOS users, the demand for and price of advertising for Android has increased. Recall that, according to published data, Android powers 72.8 percent of cellphones worldwide, while iOS controls 26.4 percent.
Tinuiti Inc., a marketing business, has corroborated the Branch Metrics data. She points out that in May, her clients’ annual ad expenditure on Facebook on the Android platform increased by 46 percent, and in June, it increased by 64 percent. On the other side, annual growth in advertising spending on the iOS platform decreased in June, from 42 percent in May to 25 percent. If current trends continue, the cost of advertising on iOS will soon be cheaper than it was last year. It also mentions that ad pricing on Android are now roughly 30% more than on iOS.
Advertisers say their interest in the Apple platform has waned due to a lack of precise user behavior data that would justify and make effective the expense of advertising on iOS devices. Facebook is attempting to persuade Apple to drop the innovation in a variety of ways, alleging that “In-App Tracking Transparency” is an anti-competitive feature that restricts advertisers’ ability to use the platform.