The ad industry is concerned about expanding the iPhone’s privacy capabilities

The ad industry is concerned about expanding the iPhone’s privacy capabilities

The ad industry is concerned about expanding the iPhone’s privacy capabilities

Advertising industry experts are concerned about the proliferation of iPhone privacy-based features. As Apple Insider writes, this concern also includes the new Private Relay and Hide My Email features. These two features were made available in the iOS 15 update for iPhone.

A few months before the release of Private Relay and Hide My Email, Apple introduced the controversial App Tracking Transparency feature to iPhones; A feature that experts say could seriously impact the advertising industry put

Facebook, as one of the giants of the online advertising industry, has repeatedly criticized Apple’s privacy policies and said that the privacy features of iOS cost the company billions of dollars.

Both Hide My Email and Private Relay features are only offered to users who pay for iCloud subscription service with more capacity than Apple offers by default. . However, The Information’s sources claim that many ad industry watchers are concerned that Apple will expand these privacy features or roll them out to more users.

Grant Simmons, one of the directors of Kochava, which works in the field of tracking the performance of advertisements, says that Apple’s policies have the ad industry activists very worried. The reason the advertising industry is concerned is that iOS privacy features threaten the two data metrics (namely, IP address and email) that advertisers used to mitigate the effects of enabling App Tracking Transparency.

Private Relay functions like a virtual private network (known as VPN) and prevents the user’s IP address from being seen by websites or application managers and encrypts web traffic. Hide My Email randomly generates an email address that can forward emails to the user’s primary inbox. With this method, the user’s email address remains hidden from websites and applications.

Since the activation of App Tracking Transparency, a number of companies were able to find solutions to bypass it, but Apple neutralizes these shortcuts through Private Relay. Also, Hide My Email makes it easy for companies to not understand who has purchased their services and products, and for this reason, they cannot target these people with advertisements in the future.

  • Apple’s privacy policies cut billions of dollars in revenue for ad platforms
  • Apple is forcing the advertising industry to change

Robert Joe, a marketing consultant, says Apple plans to continue the current trend of eliminating various advertising and marketing departments. Among his remarks, he likened iOS’s privacy features to taxing advertising agencies.

Apple’s actions in the area of ​​privacy may have created similar incentives among other companies in the technology industry. Google has previously said that it wants to bring iOS-like privacy features to Android. With this, the advertising industry will be more threatened.

While Apple has created many problems for the advertising industry with its privacy-based capabilities, the Information report says that Apple’s own advertising unit during It has experienced significant growth in the last few years.

Apple’s advertising unit earned about four billion dollars in revenue for the company last year. This number was equal to 300 million dollars in 2017. Analysts expect Apple’s advertising revenue to reach at least $10 billion in the future.

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