Snap-Facebook-Twitter and YouTube lose nearly $10bn after iPhone privacy changes

Snap-Facebook-Twitter and YouTube lose nearly $10bn after iPhone privacy changes

According to a Financial Times analysis, Apple’s adjustments to its privacy practises cost Snapchat, Facebook, Twitter, and YouTube $9.85 billion in sales. Apple’s App Tracking Transparency (ATT) policy, which compels apps to ask for permission to track users’ data, was unveiled last year. Apps cannot follow users if they opt-out, according to the regulation, which went into force in April.

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Facebook slammed the move in a full-page newspaper ad, and due to the FT’s research, we now know why company executives were so upset. Due to its vast scale, Facebook lost the most money “in absolute terms” when compared to other social networks, according to the analysis. Meanwhile, because its advertising is mostly related to smartphones, Snap “fared the poorest as a percentage of its revenue,” which makes sense for a startup that doesn’t have a desktop version.

“As a result of ATT, some of the most afflicted platforms — particularly Facebook — have to reinvent their machinery from the ground up,” adtech consultant Eric Seufert told the Financial Times. “I believe it takes at least a year to construct new infrastructure,” says the author. Before being distributed to a large number of users, new tools and frameworks must be built from the ground up and thoroughly tested.”

Apple’s new policy will force social media platforms and other apps to think outside the box when it comes to advertising. Whether that means focusing on Android devices or investing in Apple’s ad business — which almost broke its own rules by discreetly collecting user data in the same way third-party apps did — they’ll need to find a new source of money that doesn’t include tracking people on their iPhones.

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