Apple claims not to be profitable from the iOS updates they caused Facebook lose money

Apple claims not to be profitable from the iOS updates they caused Facebook lose money

According to the report, which Jerath wrote using publicly available data, claims that advertisers are flocking to Apple as a result of the new policy’s impact on Meta are simply inaccurate. The report comes just one day before Meta will announce its Q1 earnings, the company’s first report since it announced Apple’s new policy will cost it some $10 billion in ad revenue in 2022. On the other hand, Apple, which is set to report its Q2 earnings on Thursday, saw record ad revenue in Q1.

Apple (AAPL) and Facebook parent Meta (FB) are still at odds, with the iPhone manufacturer releasing a fresh study on Tuesday claiming to deny charges that it profited handsomely from last year’s iOS privacy reforms, which have hampered Meta’s advertising business. The analysis, which was funded by Apple and conducted by Columbia Company School professor Kinshuk Jerath, is intended to demonstrate that, while Meta expects Apple’s App Tracking Transparency technology will cost its ad business $10 billion in 2022, that money will not go to Apple.

Highlights

  • Without accurate ad targeting, advertisers will shift away from services like Meta and spend their advertising budgets on other platforms or services. Apple, however, is seemingly preempting any accusations that its own ad business has profited from the new policy at Meta’s expense. “I find claims that Apple captured billions of advertising dollars from other companies as a result of ATT to lack supporting evidence,” Jerath wrote in the paper. During Meta’s February earnings call, COO Sheryl Sandberg specifically blamed Apple for the company’s advertising issues.

  • This content is not available due to your privacy preferences. Update your settings here to see it. App Tracking Transparency, which Apple rolled out to iOS 14.5 users in 2021, asks users if they want apps to track their activity across the web. Turning the feature off keeps companies like Meta from being able to learn more about its users via third-party websites and apps, which impacts ad targeting.

 

“Apple created two challenges for advertisers,” Sandberg said. “One is that the accuracy of our ads targeting decreased, which increases the cost of driving outcomes. The other is that measuring those outcomes became more difficult.”