Apple has revealed that the new iOS 14.5 update will be rolled out next week, which contains a new feature that is causing concern for advertisers.
The operating system will include the ‘App Transparency Tracker’ (ATT) which should give consumers greater control and flexibility over how their data is stored. Advertisers now need to ask for explicit permission when they want to track user activity on specific apps.
A number of advertisers, including Facebook, have taken issue with the plans as they believe it could financially impact their business. Cost per clicks could be driven down with limited user visibility and increased difficulty with new customer acquisitions.
However, Apple stated that the changes are necessary to keep privacy as one of its main commitments.
Early estimations predict that over two-thirds of users will opt-out of being tracked by advertisers. Popular apps are expected to have slightly higher approval rates of around 40%, due to them being regarded as more trustworthy.
Facebook collected almost $85 billion in advertising related revenue last year, but has also spoken out about the impact that the ATT will have on smaller businesses.
Apple has also received criticism over its new location tracking devices AirTags, which people can attach to their valuable devices in case they lose them. Tile, an independent business that creates similar products, is currently taking part in the antitrust hearing which is accusing Apple and Google of holding a monopoly over the mobile app market.
Match Group’s Chief Legal Officer Jared Sine is also taking part and told the Senate Judiciary Committee that developers are constantly afraid of the two tech giants.
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