Apple Tracking Transparency Costs Facebook $13 Billion

According to the latest data, the Tracking Transparency feature introduced by Apple with iOS 14.5 may cost Facebook nearly $13 billion.

Tracking Transparency, Facebook

According to data shared by Lotame, revenue from major tech platforms could decline by nearly $16 billion due to Apple’s App Tracking Transparency. We remind you that App Tracking Transparency requires developers to request and receive individual user permission for advertising monitoring on new apps and new updates pushed to the App Store. Starting with iOS 14.5, when an app needs to access the IDFA, you’ll see a message with options to allow or disallow tracking. If you do not provide your consent, that specific application will not be able to access the IDFA and will therefore serve personalized advertisements.

Tracking Transparency, Facebook

Speaking of Facebook alone, Lotame’s report estimates that Zuckerberg’s company will take the biggest hit, as the privacy changes will cost it $12.8 billion in revenue.

Either way, analysts say Snapchat, Facebook, Twitter and YouTube still have huge growth opportunities, though Apple’s tracking transparency is impacting their revenue.

The backlash from iOS 14.5’s measures could end in about 18 months, when affected companies find alternative methods to personalize the ads shown to users.

Coming back to Facebook, we learned these days that the company will apply a 47.5% commission to creators who sell content on the Horizon Worlds platform dedicated to the metaverse. Creators can sell virtual items in the worlds they create, but Meta will handle nearly half of the revenue.

This choice contrasts with what Facebook has said in recent months, given that the company has always condemned Apple for the 30% commission on purchases made through the App Store. Just a few months ago, Zuckerberg shared this message:

“As we build the metaverse, we are focused on creating opportunities for creators to earn money from their work. The 30% commissions Apple takes on transactions make it harder, so we’re updating our subscription products so creators can now earn more. »

And now, instead…

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