Apple is one of the most valuable brands in the world and is one of the most popular brands in the history of the tech industry. And value comes with quality. So there is no doubt that Apple provides the best quality in each of its products. Due to providing the best user experience, it is currently the most valuable company with a market cap of over 2 trillion dollars.

iOS is one of the quality products (software) provided by Apple to its users.iOS is the second most popular and used operating system on smartphones after Android. Most of the premium apps were first developed for the iOS platform then, later they were developed for Android.

The reason behind the launch of premium apps on iOS earlier is revenue. App developers or software developers earn huge money by launching their products on the iOS store. You will get shocked after knowing that the iOS store has 2.22 million apps. Google has still more apps, but it is far behind Apple's iOS App Store in terms of the average price of an app in its Play Store. The average price of an app in the App Store amounts to 0.91 U.S. dollars per app. (Statista)

Advertisers target iOS applications for advertisements, especially games on the iOS App Store. Did you know that gaming apps are the most popular category among Apple users? Games Apps account for 25 percent of active applications. (Statista)

As we said earlier, Apple is best known for providing its users unique and always focuses on its user experience. Now How user experience can be good if there were advertisements. So Apple has made a strict and difficult decision regarding Advertisements on its platform.

Apple has launched a new Privacy Ad feature which is like a nightmare for advertisers around the globe. This new policy will hit the online advertising market badly. But it feels good that a company is taking user experience as its top priority.
 

What is Apple's new Privacy Ad Feature?

With the launch of iOS 14.5, Apple is also launching a new Privacy Ad feature that will allow users to restrict advertisements while they are using Applications or the web. This new feature is called App Tracking Transparency and is a headache for online advertisers across the globe. Currently, iOS 14.4 has a market share of more than 75%. And after some days, you will see this number with iOS 14.5.
 

How does ATT Works?

App Tracking Transparency is a unique feature that allows a user to restrict an application to track its activity on the web. In more simple words, this feature requires an application to get user permission before tracking its data and activity on different applications or the web.

Now, if a user doesn't allow an app to track its activity, then the developers of the application can't track its activity on the Internet; its behavior, and its interests for advertisement purposes. Also, they will not get any access to Identifiers for Advertisers (IDFA).
 

What Is Good And Ugly For Advertisers?

Well! The new Privacy Ad feature is not much good for advertisers, rather it is worse for them. Let's look at what loss advertisers bear due to this new Ad Privacy feature.
 

Low Revenue

Loss in revenue is the most painful effect of this new ad feature. The advertising company and the advertiser both have to bear a huge loss. As we told you earlier, iOS is the second most popular and most used operating system across the globe after Google and has 2.2 million apps. So if users of iOS use this feature(ATT), then the whole advertising industry will have to bear a huge loss.
 

Less Promotion

Advertisers display ads according to users' interest and activity on the web then their product gets more attraction. This will result in the promotion of various products. If a user didn't allow app developers to track its activity and behavior, then advertisers will not know about the user's interests. If they display ads without knowing the user's interests, then it will be of no use. Most of the advertising sector depends on third-party cookies, which will be disabled if users use the ATT feature.
 

New Advertising Strategies

After this new Ad Privacy feature, advertisers across the globe will have to work on a completely new strategy which will take time and money. This new feature can take away the well-stabilized market from businesses around the world.

Yes, this new feature is not good for advertisers, but it is a treat for millions of users who are using iPhone or Apple products running iOS.

Facebook and other advertisers who earn billions from advertising based on individual interests and behavior have registered their protest against Apple for its new App Tracking Transparency feature.

According to a report by Allied Market Research, the global internet advertising market size was valued at $319 billion in 2019. Apple's new Ad Privacy feature will completely change the online advertising industry and is a big blow to the billion-dollar industry.