San Francisco, April 14 (IANS) Months after tech giant Apple (NASDAQ: AAPL ) launched App Tracking Transparency (ATT), a new analysis has predicted its second year will still see major disruption to advertisers, with Facebook (NASDAQ: FB ), YouTube and more collectively losing around $16 billion.
According to AppleInsider, the tech giant released its feature in iOS 14 on April 26, last year, and it immediately had an impact on companies relying on advertising revenue.
By July, it was estimated to be causing a 15 per cent to 20 per cent revenue drop for advertisers.
Then Facebook's CEO Mark Zuckerberg reported that his company would see a $10 billion revenue hit in 2022. In October 2021, Snapchat's parent company Snap saw its stock price fall 25 per cent over fears regarding the impact of ATT.
Now a new analysis by research firm Lotame said that ATT is continuing to have an impact -- even though it is lessening.
Alongside ATT, Apple deprecated its old IDFA (Identifier for Advertisers) technology, but it has introduced new frameworks to help advertisers, and they appear to be being adopted.
"[For its second year] we think the IDFA change will have an impact on the companies of nearly $16 billion," said Lotame in its report.
"Again with the lion's share of that impact (81 per cent) coming from Facebook," it added.
That 81 per cent for Facebook represents an estimated $12.8 billion.
Lotame estimated the rest of the lost revenue as $546 million for Snap, $323 million for Twitter (NYSE: TWTR ) and $2.2 billion for YouTube.
However, Lotame described both Snap and Twitter as having "largely shrugged off" the situation. Each is adapting to using the new measurement systems provided by Apple, for instance.
Then, too, Facebook is working to decrease its reliance on Apple and is reportedly providing advertisers with new tools.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.