ATT is affecting opt-in install rates and mobile advertising budgets. Here’s how

Apple's iOS 14.5 introduced the new App Tracking Transparency (ATT) framework. This privacy measure allowed users to decide whether third-party applications can track their data for advertisements or not. According to the report shared by AppsFlyer, the opt-in level now stands at forty-six percent.

The ATT framework was created to ensure users' privacy. However, the advertising agencies were afraid that this might create problems for them as people might opt to stop apps from tracking them. But, the progress report is out, and to everyone’s surprise, the numbers have gone up instead of going down.

Installing and using applications went up in 2021. In comparison to the previous year, the current year has seen a nineteen percent increase, pandemic and global lockdown are two of the reasons that lead to such results. Another reason could be that App Tracking Transparency focuses more on personalized advertisements based on a user’s activity. This could lead the user to allow the application to track them so they can experience more personalized advertisements.

According to AppsFlyer, this rate could go up even more as iOS consumers don’t want to be targeted with numerous unwanted advertisements. At the beginning of the year, the attribution went down by twenty-five percent in June. Three months later, it went further down by five percent. But later on, it started to rise once again. With time, attribution increased by 17%, and people continued to use SKAN.

Video game applications that are more flexible showed more adaptation to SKAN as compared to other applications. Despite an increase in overall installs, there was a 6% drop in gaming applications.

The budget for user accession can reach somewhere between seventy-eight billion and eighty-three billion dollars. Advertisement prices can also go up, but still, it can be expected that the budget could go further up by next year.

Currently, sixty-five percent of the iOS applications are already loaded with ATT, and by next year, the numbers are expected to reach seventy-five percent. Some applications are still not going to add ATT as they are afraid that this will affect their progress.

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