Not being able to track you on your iPhone could cost Facebook $12.8 billion in 2022

Not being able to track you on your iPhone will cost Facebook $12.8 billion in 2022

As many of you probably know, Facebook was a staunch critic of Apple’s app tracking transparency when it was announced and released, and that’s cause for surprise and surprise. In 2021, Facebook lost some money because of these privacy features, and AppleInsider now reports that the social media giant could lose an estimated $12.8 billion just because of ATT.

Analyst says Facebook could lose $12.8 billion in 2022 due to Apple’s privacy features

Launched with iOS 14 in April 2021, App Tracking Transparency is a very useful privacy-related feature for iPhones. What it does is prevent third party tracking from happening (of course, if you choose not to be tracked, which is what the majority of iPhone users choose anyway). This way, an app like Facebook can’t track your online activity so it can serve you relevant ads. And Facebook saw the impact. Nearly 12 months after Apple launched the ATT, a new analyst now predicts that a second year will cause major disruption to advertisers. Companies that rely on advertising, including Facebook, YouTube, and others, are estimated to collectively lose about $16 billion due to this feature.

Near the end of last year, Facebook’s Mark Zuckerberg reported that the company could potentially generate $10 billion in profit for 2022. Well, it looks like that number could be a little higher, at least according to an analysis he made. Lotame Research Corporation.

According to research, Apple’s app tracking transparency will continue to have an impact this year, but it should decrease. Along with the introduction of ATT, Apple has also discontinued its older technology called IDFA (Identifier for Advertisers), which made it possible for third-party apps to track you through websites with an ID and then serve ads to you that you’d likely buy something from.

Despite this, Apple does not want to die for all advertisers, so the company has introduced new frameworks to help advertisers, but this time, personal tracking is not used and data is collected. In this way, less relevant ads can be shown to users.

The report goes on to say that the companies’ collective impact will amount to nearly $16 billion, and the company that will lose the most is Facebook with a share of about 81% of that $16 billion. Other companies expected to lose revenue are Snap, which could lose about $545 million, and Twitter, which could lose about $323 million. YouTube is also on the list of companies affected, and there is an estimated revenue loss of $2.2 billion.

We may add very large amounts. Interestingly enough, these amounts actually represent how much those companies and apps actually rely on tracking you on the internet…

The report also notes that both Snap and Twitter are quickly adapting to the situation, including using Apple’s new scaling systems, and these two companies do not appear to be involved.

Facebook has also stated that it will reduce its dependence on Apple. Earlier, the social media giant said that it will look into other ways advertisers can take advantage of it.

But the impact of Apple’s app tracking transparency, at least according to analysts, will decline by the second half of 2022, and “other shocks” are expected to affect the advertising industry, but the report does not go into detail about that.

Facebook seems to suffer the most from Apple’s ATT. You may remember earlier when Meta’s stock price fell dramatically after Zuckerberg’s report on the company’s revenue and ATT. For those of you who are curious, currently, Meta’s share price is $214.99 (at the time of writing), down from around $323 in February 2022 (prior to the report).