April 1, 2023

A new report on the impact of Apple’s privacy feature, App Tracking Transparency, shows that Apple’s advertising business appears to have benefited financially from the feature’s rollout. App Tracking Transparency (ATT) is more than a year old, reaching mass adoption in June 2021, enabling a year-over-year comparative analysis of the post-ATT mobile advertising landscape to discover how Apple could benefit from privacy updates.

According to a review of performance insights platform InMobi application consumerApple’s search ad business has now joined Facebook and Google’s advertising duopoly after its adoption rate rose 4 percentage points year over year to 94.8 percent, while Facebook’s adoption rate fell 3 percent to 82.8 percent.

Image Source: Appsumer by InMobi

Facebook, or Meta now, has long argued that Apple’s AT&T would cut into its ad revenue. It continues to inform investors about the “headwinds” ATT faces to it own monetization ability Via advertising – the social media company estimates impact $10 billion by 2022Although other analyze Make this number higher.

Appsumer’s report takes a deeper look at mobile ad spend by examining more than 100 different consumer apps, where the average customer spends hovering around $354,000 per month. The company says the sample of total annual spend reviewed in this report is over $500 million and is exclusively for advertisers in North America and the EMEA (Europe, Middle East, and Africa) region.

Notably, the report noted that Apple’s search ad business has historically lagged Facebook and Google’s ad businesses in channel adoption by about 75 percent. But in the post-ATT ad market, Apple’s footprint has grown significantly, putting it on par with Facebook and Google.

Image Source: Appsumer by InMobi

In addition to the growing adoption of Apple’s Search Ads by advertisers, the report found that Apple’s business’ wallet share rose 5 points to 15%, while Facebook’s wallet share fell 4 points to 28% From Q1 2021 to Q2 2022.

During the analysis period, Apple’s search ads grew steadily in terms of wallet share, peaking at 16% in Q4 2021, before being squeezed again in the first half of 2022 as Facebook recovered. Overall, Apple rose 5 percent during the period. However, Facebook’s wallet share was more volatile, starting at 32%, falling to 24% in Q4 2021, and then growing to 28% in Q2 2022 – an indication of how Facebook is responding to the AT&T launch.

Image Source: Appsumer by InMobi

The report noted that Google’s share of wallets remained more stable as it sees less impact from AT&T as most of its spending is on the Android platform.

The new report also examines the impact of AT&T on other tech companies, such as Snap (Snapchat) and TikTok.

It found that TikTok is ahead of Snap in both advertiser adoption and wallet share, although it has trailed Snap in those areas in the past. However, TikTok’s advertiser adoption rate fell nearly 7 percentage points year over year to 43.2%, while its wallet share held steady at around 3%. Meanwhile, Snap’s advertiser adoption rate fell 3 percentage points year over year to 32.7% after rebounding from a low of 25.4% in the first quarter of 2022. At the same time, its wallet share fell from 4% to 2% during this period.

Snap announced layoffs last week, cutting 20% ​​of its workforce after internally announcing it would miss its revenue target for the second quarter of 2022.

Additionally, the report notes that TikTok’s ad business is still fairly new and sees many advertisers testing the platform to see if it meets their needs. So far, only a few have had success.

Rumor has it that the report was Apple may be considering launching its own DSP (demand-side platform), which will allow it to further increase its search advertising wallet share by leveraging its first-party data for targeting and measurement.The company also Recently expanded its App Store advertising from search Also includes listings on the Today tab as well as individual app pages, giving it more ad space for sale.

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