How Apple's Privacy Policy Change Affected Advertising Business?

·1 min read

Apple Inc's (NASDAQ: AAPL) advertising business has more than tripled its market share in the six months after introducing privacy changes restricting rivals, including Facebook Inc (NASDAQ: FB), from targeting ads at consumers, the Financial Times reports.

The in-house business, called Search Ads, offers sponsored slots in the App Store that appear above search results.

EasyPark app doubled its spending with Apple since April, leading to an "all-time high in ad conversion rate." While the efficiency of reaching iPhone customers via Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) Google "has suffered and thus we have decreased our budget."

Recently, Facebook admitted it had "gotten harder to measure (the effectiveness of ad) campaigns on our platform" and said that many businesses were experiencing a "greater impact" than expected from Apple's changes.

Branch, which measures the effectiveness of mobile marketing, said Apple's in-house business accounts for 58% of all iPhone app downloads that result from clicking on an advert, up from 17% a year ago.

AppsFlyer sees marketing spending on mobile apps for both iPhones and Android phones at $58 billion in 2019 and would double to $118 billion by next year. Apple will likely earn $5 billion from its advertising business this fiscal year and $20 billion a year within three years, Evercore ISI said.

Singular acknowledged that some mobile advertisers, dismayed by the lack of visibility on iPhones, are now spending more of their budget on the Android market. The split in spending changed from 50/50 earlier this year to 70.3% on Android to 29.7% on iPhones by late June.

Price Action: AAPL shares traded lower by 0.81% at $143.67 in the market session on the last check Monday.

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