Apple’s App Tracking Transparency (ATT) Feature will Cost Facebook $12.8 Billion

Apple is one of the biggest tech companies in the world. Apple has come up with a new privacy policy that can cost billions of dollars for Facebook. Almost a year after Apple introduced App Tracking Transparency. It is a new study estimates that advertisers will still face considerable disruption in the sophomore year, with Facebook, YouTube, and other platforms losing roughly $16 billion.  

App Tracking Transparency (ATT)

On April 26, 2021, Apple announced the App Tracking Transparency (ATT) feature in iOS14, which immediately impacted businesses that rely on advertising dollars. In July, it was reported that it was costing marketers 15% to 20% of their income.  

Then Mark Zuckerberg of Facebook revealed that his company would lose $10 billion in revenue in 2022. Fears over the impact of ATT caused Snap, to see its stock price drop 25% in October 2021.  

According to a new investigation by research firm Lotame, ATT continues to have an effect, even though it is diminishing. Apple, like ATT, recently phased out its old IDFA technology. But it has created new frameworks to assist advertisers, which look to be gaining traction.  

Lotame’s Analysis

According to Lotame’s analysis, “[during its second year], we believe the IDFA adjustment will have an approximately $16 billion influence on the corporations.” “Again, Facebook is responsible for the lion’s share of that influence (81 percent).”  

Facebook’s 81 percent is worth an estimated $12.8 billion. The remaining revenue loss is somewhat to be $546 million for Snap, $323 million for Twitter, and $2.2 billion for YouTube, according to Lotame.  

ATT is expected to lose $16 billion in revenue in its second year. Lotame has decided not to pursue the matter further. According to Lotame, the advertising sector will be hit by “other shocks” by the second half of 2022, and ATT’s impact will have been “cauterized.” 

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