Apple Experiences a Drop in Advertising Costs Due to the New Privacy Policy

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Mayurchhanda Ghosh
Mayurchhanda Ghosh
An aspiring academic, freelance creative writer, theatre enthusiast, a part-time dreamer and a full-time learner.

According to a report produced by The Wall Street Journal, advertisers have started drifting away from investing in the iOS platforms. Instead, advertisers are investing more in the Android platform. This huge shift in the advertisement world has resulted from Apple’s new privacy policy, and thus this, Apple is on the verge of suffering a serious loss.

To state the reason behind it explicitly, it is essential to ponder upon the new policies introduced by Apple. In the recent iOS 14.5, Apple has decided to keep a ban on tracking user data without the company’s consent.

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Now the problem lies in the fact that only 33% of device users allow the process of collecting data. As a result of this, advertisers have gradually begun to shift interest from iOS to Android. Not only this, another important fact to keep in mind is that about 70% of Apple users have already completed the process of upgrading their device to iOS 14.5 in the last month.

As a result of this, the cost of mobile advertising on iOS eventually dropped by 11% and the cost of advertising on the Android platform underwent a hike of 10% in the month of June. Advertising companies could no longer get access to Apple customer data and as a result, they are failing to use targeting tools.

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Hence, the advertising companies could not extract the effectiveness that they extracted before. Previously in the month of May, Apple experienced its first loss. The company experienced this because of its decision to keep the advertising campaigns in suspension. However, in the same month, Android experienced a hike of 8-21%.

Although the situation is difficult for Apple right now, it is expected that the situation will get better with the launching of the iOS 15 which is scheduled to be launched in the month of September this year. This is because the new release of the iOS 15 is designed to diversify advertising possibilities.

Thus it is anticipated that in the app store, a second window might pop up for applications from the recommendations that appear while searching for the programs. Through this process, it will be easier to boost the promotion of the application throughout the AppStore without depending on the response to specific requests.

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