Advertisers have begun shifting their spending patterns in the months since Apple began requiring apps to gain iPhone and iPad users’ permission to track them via App Tracking Transparency.
Patience Haggin for The Wall Street Journal:
Less than 33% of iOS users opt in to tracking, according to ad-measurement firm Branch Metrics Inc.
As a result, the prices for mobile ads directed at iOS users have fallen, while ad prices have risen for advertisers seeking to target Android users.
Digital advertisers say they have lost much of the granular data that made mobile ads on iOS devices effective and justified their prices. In recent months, ad-buyers have deployed their iOS ad spending in much less targeted ways than were previously possible, marketers and ad-tech companies say. The shortage of user data to fuel Facebook Inc.’s (FB) suite of powerful ad-targeting tools reduces their effectiveness and appeal among some advertisers, ad agencies say.
As of June 22, more than 70% of iOS devices had been upgraded to a version that requires the tracking prompt, according to Branch Metrics, allowing advertisers to begin assessing the impact.
As more of that information has emerged, advertisers have adjusted their buying strategies. Spending on iOS mobile advertising has fallen by about one-third between June 1 and July 1, according to ad-measurement firm Tenjin Inc. Android spending rose 10% over the same period, Tenjin said.
Advertisers have typically spent more per iOS user, seeing them as bigger spenders than Android users.
MacDailyNews Take: Want to reach the best, most lucrative customers in the world? Advertise on sites that cater to users of the Mac, iPhone, iPad, Apple Watch, Apple TV, etc. 🙂
The median income of an iOS user, for example, is significantly higher than those who settle for Android. iPhone users spend nearly double what Android settlers spend on tech every month.
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Another 20% of our revenue goal is brought in via ads. Yes, we’re currently operating at about 35% of our revenue goal which is, uh… suboptimal, but we’re beginning to come off the COVID-19 shock to online advertising and now ready to see how App Tracking Transparency will shake out – hopefully it will eventually help us see better paying ads, which means fewer ads!
How is this a bad thing?