With iPhone's privacy changes, advertisers will get more ad-performance data for ads bought through Apple than via third parties, giving its ad business an edge

Under the iPhone maker's new rules, advertisers will get more ad-performance data for ads bought through Apple than through third parties

Wall Street Journal 2021-04-27 Patience Haggin

Context & Ripple Effects

Apple’s privacy-rule rollout was already expected to reduce the measurement and targeting tools available to ad networks; Google had outlined reduced visibility into app-install metrics, while Facebook warned its Audience Network would become less effective. Apple’s own advertising was also reported to be enabled by default in iOS 14, creating an early asymmetry between Apple’s ad settings and outside networks’ tracking consent.

The reported measurement advantage arrives as Apple was preparing to add another App Store search ad placement, making its planned expansion of App Store search inventory more consequential: Apple can offer both the inventory and comparatively richer performance reporting.

First-order effects

Advertisers buying through Apple receive more ad-performance data than those buying through third parties, giving Apple a more measurable proposition inside its own ecosystem.
Third-party ad networks face weaker reporting under the new rules, directly complicating campaign measurement for their advertiser customers.

Second-order effects

Google and Facebook must compete for budgets with less granular app-install visibility and targeting; later coverage linked ATT’s limits on Facebook targeting to some advertiser spending shifting toward Google.
Brands and agencies adapting their targeting methods must weigh Apple search placements more heavily when comparable third-party measurement is constrained.

Third-order effects

If platform-set privacy rules continue to differentiate a platform’s own advertising from outside ad tech, mobile advertising shifts toward first-party inventory and measurement controlled by operating-system owners.
The episode sharpens the structural tension between privacy controls and platform self-preferencing: the company setting data-access rules can also become the better-instrumented ad seller.

The trend: Mobile platforms are turning privacy and measurement controls into a distribution advantage for their own advertising products.

Discussion

@csooran Chand Sooran on x
Apple's privacy changes are a masterpiece in disguising its self-interest with the vestiges of virtue. https://www.wsj.com/...
@nalanpog Nicholas Poggioli on x
Apple has successfully marketed increased monopoly power selling users to advertisers as “privacy.” Apple's Privacy Changes Are Poised to Boost Its Ad Products https://www.wsj.com/...
@justinbrady @justinbrady on x
Apple makes it more difficult for 3rd parties to track it's users... while improving their own ability to track their users and sell their data. https://www.wsj.com/...
@naokilaw Naoki Okada on x
#Apple's Privacy Changes Are Poised to Boost Its Ad Products: Under the #iPhone maker's new rules, advertisers will get more ad-performance data for ads bought through Apple than through third parties. https://www.wsj.com/...
@unhedgedchatter @unhedgedchatter on x
“Under the iPhone maker's new rules, advertisers will get more ad-performance data for ads bought through Apple than through third parties” [Did you really think it was about privacy?] $AAPL https://www.wsj.com/...
Vox Rebecca Heilweil on x
Why the new iOS update is such a big deal
@jacknicas Jack Nicas on x
Tim Cook and Mark Zuckerberg met at Sun Valley in 2019. Facing scandal, Zuck asked Cook for advice. Cook told him to delete much of Facebook's data. Zuck was stunned — and ignored him. Now their feud has gotten even worse. with @MikeIsaac: https://www.nytimes.com/...
@kevinroose Kevin Roose on x
It's fascinating that FB has completely lost the war of public opinion against Apple despite having a strong starting position (people like free stuff and care more about privacy in theory!) and owning the world's biggest persuasion machine. https://www.nytimes.com/...
@profcarroll David Carroll on x
Don't trust the surveillance capitalists. They're shameless scoundrels. They make fake accounts and fake news to run targeted attacks against any challengers to their abusive business models. https://www.nytimes.com/... via @MikeIsaac @jacknicas https://twitter.com/...
@mollywood Molly Wood on x
The uh ... idea that Facebook *creating* a disinformation campaign is an equivalent “jab” to Cook's snide TV comments is a little jarring. https://www.nytimes.com/... https://twitter.com/...
@justinhendrix Justin Hendrix on x
After the Cambridge Analytica scandal, Tim Cook effectiveoy told Mark Zuckerberg that Facebook's business model was untenable, report @jacknicas and @MikeIsaac. Now their feud is playing out on a grand scale: https://www.nytimes.com/...
@kurtwagner8 Kurt Wagner on x
FB is very concerned that if people only see the Apple prompt they will not allow tracking. That would be v bad for FB's targeted ads business
@jeremylittau Jeremy Littau on x
(2/3) ... this statement is absolutely the wrong frame. Facebook doesn't want an open internet. It wants to be the Internet, a self-contained experience. Look at how many partnerships it launches that are designed to be embedded on the site. https://twitter.com/...
@evan_greer Evan Greer on x
i mean, i could make a pretty good argument that selling luxury phones built by underpaid workers while maintaining a draconian stranglehold on what software people can run on them, creating a censorship choke point for authoritarian regimes, is an untenable business too, but htt…
@migueldeicaza Miguel de Icaza on x
iPhone friends, install the new iOS update, which contains the anti-tracking features that Facebook despises. And make sure you deny Facebook the tracking capabilities, so I can live vicariously through you (I have deleted all Facebook apps from my phone - for health reasons). ht…
@kurtwagner8 Kurt Wagner on x
You'll notice one of the key arguments from FB is that tracking will help them “keep Facebook/Instagram free of charge” I imagine this line will work on a lot of people. Of course, if you don't accept tracking, FB won't suddenly start charging you
@jeremylittau Jeremy Littau on x
What's interesting about that graf is it gets Apple's stance (and self-interest) correct. If you're new to this topic you might read that and think Facebook is the good guy here rather than the reality: this is a tug-of-war over who gets to control your experience. https://twitte…
@monteiro Mike Monteiro on x
Stop it. Neither of these billionaires has your best interests in mind. https://www.nytimes.com/...
@carnage4life Dare Obasanjo on x
@seyitaylor A NYT journalist using a NYT story as a definition of “public opinion” as the Financial Times is regularly reporting on the global fallout of Apple's changes is actually an indictment of journalism at the NYT not a lost war of public opinion. https://www.ft.com/...
@jeremylittau Jeremy Littau on x
(3/3) Zuckerberg touts the open Internet ideal when it suits him, but the company is anti-competitive and has created an illusory walled garden of its own. It is critical to get these descriptions right. The public constructs understanding of issues based on language.
@seyitaylor @seyitaylor on x
@Carnage4Life Just even failing to point out that there are/should be antitrust concerns with Apple's latest move feels very irresponsible (but par for the course) from them.
@seyitaylor @seyitaylor on x
We're going to write a minimum of one story a week for 4 years saying that Facebook was responsible for the end of democracy, youth suicide, body issues, global warming, and the quality of your sex life. And then... “it's fascinating how people don't like FB any longer”
@migueldeicaza Miguel de Icaza on x
The NYTimes helped memorialize the launch date of iOS 14.5 with the anti-tracking features by publishing this article on the fight between Facebook and Apple. Includes details about Facebook hiring a company to attack Apple's reputation, read it here: https://www.nytimes.com/...
@matthewstoller Matt Stoller on x
“In 2017, a DC political firm funded by Facebook published anonymous articles criticizing Mr. Cook and created a false campaign to draft him as a presidential candidate, presumably to upend his relationship with Trump.” Billionaires are weird. https://www.nytimes.com/...
@jeremylittau Jeremy Littau on x
This is a good read on Apple's new privacy features and some background on Facebook's data collection efforts for those unaware how pervasive it is. But ... (1/2) https://www.nytimes.com/...
@pt Parker on x
“Privacy is a fundamental human right [in countries where moral stand this costs us nothing]” - Tim Cook https://twitter.com/...
@gavinsbaker Gavin Baker on x
This really is some of the best PR I have ever seen. What a win for Apple. Would be equally easy to frame this as “Apple taking advantage of quasi monopoly power to increase its own services/advertising revenue by disadvantaging 3rd party apps.” https://www.nytimes.com/...
@sdw Sebastiaan de With on x
Beautifully animated new video on App Tracking Transparency by Apple. https://www.youtube.com/...
@wbm312 Whitney Merrill on x
The reality is: People don't care more about privacy in theory... They actually care about their privacy but feel like they've totally lost control. https://twitter.com/...
@eliotwb Eliot Brown on x
Good read. funny how big tech has a lot of “no YOU'RE the monopoly” fingerpointing right now https://twitter.com/...
@matthewphillips Matt Phillips on x
What a great story. Corporate strategy meets personality conflict. And it basically touches everyone on earth. https://twitter.com/...
@elisewho Elise Hu on x
What a standup guy, with a totally not shady, extractive business “Mr. Zuckerberg told his lieutenants that Facebook ‘needed to inflict pain’ upon Apple and Mr. Cook” Tim Cook: “If I'm asked who our biggest competitors are, they would not be listed” https://www.nytimes.com/...
@nytimes @nytimes on x
Apple vs. Facebook: A new iPhone feature would let users stop Facebook from tracking them across other apps, escalating a feud between the companies. https://www.nytimes.com/...
@openrightsgroup @openrightsgroup on x
Hey @Facebook 👋 If introducing very basic user's privacy features are reducing your profit and hurting your business, then the problem is with your business model. https://www.bbc.co.uk/...
@benedictevans Benedict Evans on x
It seems like only a matter of time before Facebook starts pointing out what a big business Apple has in China https://t.co/rcIOKU00Sq
@allthingsnatsec DCGomez on x
I choose Tim Cook's vision. https://twitter.com/...
@kushkatakia Kush Katakia on x
Mr. Zuckerberg asked Mr. Cook how he would handle the fallout from the controversy, people with knowledge of the conversation said. Mr. Cook responded acidly that FB should delete any info that it had collected about people outside of its core apps. https://www.nytimes.com/...
@puiwingtam Pui-Wing Tam on x
There are many entertaining feuds in Silicon Valley but this one between Cook and Zuckerberg is surely deserving of its own streaming series. Perhaps on Apple TV? A @MikeIsaac @jacknicas collaboration https://www.nytimes.com/...
@katierosman Katie Rosman on x
At a 2019 mogul fest, Zuckerberg asked Cook his opinion of the Cambridge Analytic data debacle. Cook responded acidly that FB should delete any information collected. Two years later, Zuck and Cook's opposing positions have exploded into an all-out war. https://www.nytimes.com/..…
@drfunkyspoon David Grinspoon on x
Apple or FB? Neither. FB wants to keep collecting info about us to sell. 🍎 wants to protect some privacy as $ premium feature. Privacy is our right. Social media is an essential public utility. WE NEED A PUBLIC OPTION designed around user needs & rights. https://www.nytimes.com/.…
@camorris Chris Morris on x
This should be pretty epic. Anything Apple — or any other company — can do to knock Zuck and Facebook down a peg is good by me. https://www.nytimes.com/... https://twitter.com/...
@kurtwagner8 Kurt Wagner on x
Here is the pop-up that Facebook plans to show users right before they have to decide whether to allow FB to “track” them on iOS 14. So you'll see the FB screen first, then a version of this permissions screen from Apple (imagine “Venmo” is replaced with “Facebook") https://twitt…
@alexeheath Alex Heath on x
“You have become the product” Interesting Apple ad touting its new ad tracking prompt https://t.co/zeIirg2d2u
@jarroddicker @jarroddicker on x
new ad guidelines aren't just changing the way apps make money, it's changing the way apps market. new products pour dollars into advertising to get downloads. almost every media company spends a majority of marketing dollars on Facebook to acquire users.
@briannawu Brianna Wu on x
Hate Facebook? DO THIS RIGHT NOW. 1. Download iOS 14.5 2. Go to Settings, Privacy, Tracking 3. Turn “Allow apps to ask to track you” OFF They are terrified of this update because it destroys their ability to track you across the entire Internet. https://twitter.com/...
@samifathi_ Sami Fathi on x
A live look at Tim Cook pushing the “release iOS 14.5” button, knowing what Mark Zuckerberg is feeling rn. https://twitter.com/...
@cnbc @cnbc on x
.@karaswisher: Facebook will adapt to Apple's privacy changes. She discusses Facebook's worry over Apple's new software update. “The only places to advertise are Facebook and Google so maybe that is the problem.” @CNBCTechCheck https://www.cnbc.com/... https://twitter.com/...
@matthewstoller Matt Stoller on x
@JuddLegum Zuckerberg has considered filing an antitrust suit against Apple. I don't get why he doesn't go after the app store moat. That wouldn't hurt Facebook.
@fredericjacobs Frederic Jacobs on x
iOS 14.5, available now, brings App Tracking Transparency which requires apps to get the user's permission before tracking their data across apps or websites owned by other companies for advertising, or sharing their data with data brokers. https://www.youtube.com/...
@autumndork Auggie on x
If you have an iPhone, please update to iOS 14.5. It contains a total reworking of it's universal privacy features and now requires your consent before anything is allowed to track or gather your information. Zuckerberg has been trying to block this update in court for months htt…
@monkchips Mnkchps on x
The business models of Apple and Facebook are in increasing conflict. My money in on Apple right now. https://twitter.com/...
@jason_kint Jason Kint on x
Today: Kneecapped by Apple https://www.wired.com/...
@lorenzofb Lorenzo Franceschi-Bicchierai on x
NEW: Go update your iPhone to 14.5 so you can tell apps to stop tracking you. Apple just introduced one of the most important privacy features in years. Here's a quick explainer on what that is. https://www.vice.com/...
@schubes17 Schubes on x
KELLY: Apple's adding a privacy feature that lets you restrict apps from sharing your data. But this article says there's pushback? ME: That's odd, because that sounds good. KELLY: Some guy is quoted that it'll hurt small businesses. ME: What, is he from Facebook? Sure enough... …
@snazzyq Quinn Nelson on x
woof apple breaking out the big guns - https://www.youtube.com/...
@matthewstoller Matt Stoller on x
One thing I don't understand is why, if Facebook and Apple are at each others' throats, Facebook doesn't start lobbying for app store legislation to break Apple's monopoly.
@carnage4life Dare Obasanjo on x
iOS 14.5 arrives today and practically every ad supported app is going to hit you with the equivalent of the EU cookie banner. The coverage of this from both WSJ at https://t.co/xRqQt9rdEu and the Financial Times has been informative on the ramifications across the industry. http…
@jacknicas Jack Nicas on x
@MikeIsaac Apple and Facebook's fight intensifies with the release of a new iPhone feature today that requires apps to get permission to track people on other apps. Most people are expected to block that tracking — and Facebook isn't happy. @bxchen explains here: https://www.nyti…
@trycatchhcf @trycatchhcf on x
“With the release of Apple's iOS 14.5 on Monday, all of your apps will have to ask in a pop-up: Do you want to allow this app to track your activity across other companies' apps and websites? For once, your answer can be no.” https://www.wired.com/...
@jason_kint Jason Kint on x
Wow, here is another great report on the Apple changes. This one from @lilyhnewman @WIRED who also nails the nuance in what is impacted here especially the type of data collection being blocked by default without consent. https://www.wired.com/... https://twitter.com/...
@jason_kint Jason Kint on x
ps and Facebook's reward for spreading false info in private meetings with ad clients, hiring Definers, attacking Apple, is they get to (once again) be the poster child of surveillance as Apple rolls this out 48 hours prior to Facebook earnings. 🤣 https://twitter.com/...
@morningbrew @morningbrew on x
7/ You got it: Facebook Facebook took to App Tracking Transparency like a foot to a stray Lego piece. In a PR blitz following Apple's announcement, it argued that small businesses would be hurt without the ability to send users targeted FB ads. https://twitter.com/...
@michellemanafy Michelle Manafy on x
Today, Apple will release iOS 14.5, one of its most anticipated software updates for iPhones & iPads in years. It includes a new privacy tool, called App Tracking Transparency, which should provide more control over how data is shared. https://www.nytimes.com/...
@msmaryruthie @msmaryruthie on x
“When an app wants to follow our activities to share information with third parties such as advertisers, a window will show up on our Apple device to ask for our permission to do so. If we say no, the app must stop monitoring and sharing our data.” https://www.nytimes.com/...

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