Will Apple’s New App Tracking Transparency Feature Push Advertisers Away from Spending On It?

The Apple new software version leads to advertisers spending less on the company's manufactured devices.

Apple had recently announced that it will be launching its software version 14.5 which will have a built in App Tracking Transparency feature through which applications will have to take the users consent before sharing their data. Considering how almost all the ads we receive on applications are based on user preference which is decided by the data collected and spent to the company this looked like a tough news for the advertisers as well as applications who generate a great revenue off these advertisements.

Now since, iOS 14.5 has finally realized a sudden downfall in advertisement spending has been observed and this was concluded in a study shows that a few days after the release of iOS 14.5, advertisers have started spending more on the Google-owned OS Android. The data was collected based on a survey which took place between April 26 to May 9, and was provided by AdColony, Liftoff the iOS 14.5, Fyber, Vungle and Singular.

The report showed that only 35 percent of the iOS users have opted in favor of their data being tracked and due to this practice the CPM (cost per thousand impressions) has declined from a 2.4% decrease to 8.73%, based on data provided by different sources.

However, the data did show that the fluctuation in advertisers spending varied from alliance to alliance with some reporting a decrease in spend, ranging between 2.51% (AdColony) to 3.59% (Singular) while Vulgar had managed to show an increase in spending on iOS by 3.32 percent.

With the advertisers’ interest being away from iOS, currently the most benefit is being received by Android OS. Liftoff found an 8.29% rise and Vungle observed a 21% increase in advertisers spending on Android devices and this shows that the that marketers may probably be spending more on user acquisition if you compare both the iOS and Android figures.

However, speculations are that this downfall for Apple is only for a short while and according to the Post IDFA alliance this change is very minor so far. It is expected that once more users adopt iOS 14.5 and marketers feel more confident in spending against IDFA-less traffic, CPM prices will increase again.

Though it may still take a few more weeks before we get to know the actual results and impacts that iOS 14.5 will be showing on its advertisements.

Read next: Apple Releases Software to Facilitate People With Disabilities

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