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Apple: Privacy changes promote its own ads

Apple's advertising business has more than tripled its market share in the six months since it introduced privacy changes to iPhones that prevented competitors, including Facebook, to target its consumers with ads.

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The internal business, called Search Ads, offers sponsored slots in the App Store that appear above the search results. Users searching for, for example, "Snapchat" may see TikTok as the first result on their screen.

Branch, which measures the effectiveness of mobile marketing, said Apple's insider business is now responsible for 58% of all iPhone app downloads resulting from clicking on an ad. A year ago, its share was just 17 percent.

The application advertising market is large and fast growing. AppsFlyer, another analytics company, estimates that marketing spending on mobile apps for both iPhone as for Android phones, it was $ 58 billion in 2019 and will double to $ 118 billion next year.

Meanwhile, Apple is likely to earn $ 5 billion from its advertising business this year and $ 20 billion a year over three years, say researchers at Evercore ISI, who said that Apple's push to protect privacy " changed the landscape significantly ".

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Advertising with Apple became more attractive after the iPhone maker said users would be excluded from watching ads by default, a move that left competitors such as Facebook, Google, Snap, Yahoo and Twitter far behind, such as said Grant Simmons at advertising analytics firm Kochava.

privacy changes

As of April, data on how users respond to ads, which were once real-time and detailed, is now up to 72 hours behind and only available in total. Instead, Apple offers detailed information to anyone who subscribes to its ad service.

Some advertisers frustrated by the lack of visibility on iPhones are now spending more than their budget on the Android market, said Singular, which said the 50/50 spending split earlier this year had widened to 70,3% on Android. and 29,7 percent on iPhones by the end of June.

SpotHero parking app said the accuracy with which it was possible to focus ads on users through Apple's advertising service was at odds with the company's privacy rhetoric.

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Ο Chris stevens, head of marketing at SpotHero, noted the "retargeting" tool, a service offered by Apple to allow companies to track users to reconnect with them at a future date.

Apple, for its part, said its privacy features were designed to protect users. «The technologies are part of an integrated system designed to help developers implement secure advertising practices and protect users - not to the benefit of Apple.»

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