Is adtech Prepared for Apple's Privacy Changes?

In our last blog post on the Changing Ad Tech Landscape, we discussed Google’s phasing out of third-party cookies from its Chrome browser. The advertising technology space has been shaken once again—this time by Apple’s iOS 14.5 update.

This new privacy update requires apps to seek opt-in consent before providing targeted advertising via Apple's Identifier for Advertisers. Called the App Tracking Transparency (ATT) framework, it has brought in a major shift in the ad tech ecosystem by switching it from an “opt-out” arrangement to an “opt-in” one.

Earlier, Apple allowed developers to track iPhone activity across multiple apps and share it with other services. But the ATT framework has forced developers to issue a one-time prompt regarding tracking preferences, allowing users to set permissions for individual apps.

The move has been hailed by privacy advocates for bringing more transparency and control to the ad tech landscape. However, the industry has witnessed a drop in spending on advertisements as more users are choosing not to opt-in to Apple’s tracking features. ATT has significantly impacted a large number of advertisements for users who upgraded to iOS 14.5.

As per Flurry Analytics, iPhone users are rejecting apps’ requests to track them three-quarters of the time. This is a matter of grave concern for ad tech professionals and has prompted several advertising groups to lodge complaints with the regulators. The new rules have led to many advertisers holding back on spending while some are waiting to ask users to opt-in to tracking.

Why the Change?

With the two key players, Google and Apple, changing the ad tech game, the entire industry is in for a ride. So, what le