IDFA is an identifier for advertising assigned by Apple. It allows advertisers to track users to deliver ads to the desired audience of users. Apple’s new privacy measure has been complained by many advertisers that it reduces advertising effectiveness, affecting the company’s online advertising business and profits.
Privacy tool IDFA is expected to cost $16 billion next year from tech companies. Data management platform Lotame last year estimated tech companies to spend as much as $10 billion on IDFA, which includes platforms Facebook, Twitter, Snap and YouTube, of which Facebook accounts for 80% of the financing.
The impact of iOS on business is undeniable. In the next year Lottery prediction The total financial loss will increase to 9%, to about 16 billion USD. Facebook continues to be the top spender, predicting the company will lose up to $12.8 billion. The next spend ranking is expected to be YouTube with $2.1 billion, SNAP with $546 million, and Twitter with $323 million.
However, facing the difficulties of the IFDA, the companies from the protest movement also sought solutions to overcome that problem in turn. Snap has adapted by improving their own measurement tools, while also using SKAN.
SKAN or SKAdNetwork is Apple’s advertising tool. It is a framework that helps measure the conversion rate of app install campaigns without compromising user privacy.
In addition to Snap, Facebook is also implementing similar strategies. The company has begun to reduce its reliance on Apple by providing new tools and features. Perhaps they realized the company was too dependent on the mobile ecosystem while lacking proper control.