Apple’s New Privacy Update Is Estimated To Leave A ‘$16 Billion’ Dent On Leading Social Networks’ Revenue

The new Apple tracking transparency update may be a great change for the company but the same can’t be said for other leading tech giants who are expected to have $16 billion worth of revenue wiped away, as reported by Insider based on Lotame Solutions data.

Some of the leading firms to take the biggest hit will include the likes of Twitter, Snapchat, Meta
(aka Facebook), and YouTube. To be more specific, Meta has been predicted as the company to take on the greatest loss in revenue with figures reaching around $12.8 billion.

Clearly, the picture is a continuation of the fallout experienced by these leading tech firms after Apple’s new privacy changes during its first year. And now, experts believe the savage trend will continue.

The renowned tracking transparency update was put forward by Apple last year in April and since then, it has managed to wreak havoc across the board.

In case you’re still new to the update, well, it was known to force developers into asking for permission from users so they could be tracked over a number of websites and applications with help from the company’s Identifier.

As you can probably expect, a huge number of users denied the update from doing so, leading to so many platforms, advertisers, and tracking companies losing a significant amount of revenue as they could no longer measure ads.

One thing led to another and before we knew it, this development caused so many advertisers to think outside the box and invest in those channels that relied less on the new update. This included the likes of offline advertising.

But now, leading data management firm Lotame is shedding light upon a new data analysis report on how Meta will take the greatest hit with the new changes this year as well. And these estimated figures entail a $12.8 billion loss.

Just last year, Meta issued a warning that delineated how Apple’s privacy changes would create chaos for the company. And although it did reveal how it was working hard like other tech firms to create a number of different tools to counteract the effects of Apple’s privacy changes, the progress is slow.

But the misery also begins for Snapchat which solely focuses on mobile and hence will feel a similar hit for this year’s revenue, with estimates detailing hits of 9.6%.

The CFO for Snap, Derek Andersen, said in February how the company was making progress with its recovery from losses. However, it would take plenty of time or at least a few more quarters to adapt to more innovative targeting tools.

Meanwhile, Google’s owner Alphabet mentioned how it didn’t feel the effects of any changes made by Apple. And the fact that it owns Android which has its own identifier meant it could reap the benefits of advertisers who moved away from iOS users.

On the other hand, Lotame has claimed that YouTube would feel a modest impact of the hit, with estimated figures reaching $2.2 billion which is equivalent to 6.5% of the company’s revenue for this year.

Twitter acknowledged previously how the impact on its revenue has been modest, with Lotame predicting a loss of $323 million or nearly 5.4%. But the firm added how its investments in a series of its products from 2020 to 2021 really paid off in this case.

Tech experts believe that as the year passes on, the effect of these changes would further intensify and be more difficult to isolate. Hence, companies can hope for the best as some predictions are going as far as claiming how Apple could potentially disturb the world of advertising by taking its privacy tools to a new level.

Read next: New Study Proves Apple’s ‘Tracking Transparency App’ Has Actually Made Tracking More Difficult
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