Facebook, Twitter and YouTube lost nearly $10 billion in revenue after Apple introduced privacy change

Apple’s App Tracking Transparency Policy, which requires users to give consent to apps to track their online activities, cost social media apps including Snapchat, Facebook, Twitter, and YouTube nearly $10 billion in revenue, according to an online report. Facebook lost the most money in absolute terms when compared to social platforms because of its size. Snapchat fared the worst as a percentage of its business because advertising is tied to a smartphone, the report noted.

Apple’s App Tracking Transparency gives control to users over whether an app can track their online and iPhone activities and use the collected data for personalised ads. Before iOS 14.5, tracking by apps was turned on by default. Apple's App Tracking Transparency made its way to several social media platforms in April, as per Apple Insider.

Lotame, a data collection company focused on ad technology, told Financial Times that there was a significant drop in revenue for Facebook, Snap, YouTube, and Twitter. The social media apps recorded a 12 per cent decline was discovered by the data management firm. Financial Express reported that the social media apps recorded a total of $9.85 billion in revenue decline.

Lotame COO Mike Woosley said that the App Tracking policy resulted in fewer ad results for iPhone users. Woosley also noted that the cost in acquisition produced double pricing as the lost yield resulted in 50 per cent. Eric Seufert said that it would take several years to produce the tools for advertising and that there is a need for them to undergo thorough testing before being used by the consumers.

Earlier this month, Facebook CEO Mark Zuckerberg reiterated that Apple has been hurting not only Facebook but also millions of small businesses with these changes. Zuckerberg had noted that Facebook experienced revenue headwinds because of Apple’s App Tracking transparency and its impact on the advertising business. He said that the iOS privacy features stated affect small businesses that rely on ad platforms in difficult times. Facebook CFO David Wehner said that dealing with ATT was challenging. He also added that it was slightly disruptive to their expectations.