Business News

How Apple’s iOS 14.5 update shakes up the app’s economy

[ad_1]

IPhones users around the world began receiving some unknown messages on Monday after downloading Apple’s latest software: Want to keep track of them?

Ten months after Apple ordered it “Improved privacy features” For iPhones, the changes have finally come with iOS 14.5, however loud protests Apple’s rivals and complaints against the monopoly in France and Germany.

The first time users open after updating each app, they will be faced with a simple question: “Allow (application name) to track your business on other companies’ apps and websites?”

There will be two possible answers: “Ask the app not to follow up” or “Accept”. Application developers will be given time to argue for a follow-up case, but in the face of such a clear possibility, most users will say no.

How to keep track of notifications on iOS14.5 © Apple

What exactly is tracking?

So far, apps have been able to collect and share with third parties, such as data brokers, personal information about you, including your location, what other apps you’re using, when you signed in to the app, an encrypted version. your email address, phone number, and the only number that identifies your iPhone, known as the IDFA (Advertiser ID).

According to the developer of Fun Corp apps, “hundreds of billions of users are following the actions and events” every day. It was discovered by a Washington Post writer 5,400 followers took data from their phone in a single week. Many apps send data to multiple partners, including Facebook and Google.

As iPhone users navigate through apps and surf the Internet, they leave little data each time, including a copy of IDFA, to build a profile of their behavior in the online advertising industry, which advertisers use to deliver relevant ads. .

What happens when I refuse to follow up?

Apple wants all apps to get explicit permission for this behavior. If users do not select the first time they receive notification, an application will be permanently banned from accessing their IDFA. And Apple expects apps not to share other data, including phone numbers or emails.

Will I stop receiving ads?

No, you will receive the same number of ads but they will not be personalized. The advertising industry believes that the wording of the initial notification does not adequately explain the value of follow-up.

Users will still get ads, but when they cut the data feed, they will be less relevant and applications will be able to charge the advertiser less.

In short, the ad-based business model is being hit hard by many free apps.

How applications should show what information they are collecting

How applications should display information about the data they are collecting © Apple

So what do companies think?

The digital advertising industry costs more than $ 350 billion annually and many application developers they are furious.

Facebook, in particular, has built a $ 80 billion business a year selling user profiles and personalized ads. The company has published full-page print ads in a number of newspapers, including the Financial Times, saying the changes will hurt small businesses that will not reach customers so easily.

Apple also claimed that it was “using its main market position to collect its data for personal preference, while making it almost impossible for competitors to use the same data.”

“They say it’s about privacy, but it’s about profit,” Facebook has said so. “They didn’t fool us.”

Other companies such as Snap, Twitter and TikTok will also be successful, and many mobile-based companies have been experimenting with solutions, both In the US and In China.

Recently, Mark Zuckerberg warned that the change could benefit Facebook, however, if companies push their budgets to shift from advertising and direct marketing. Facebook is recently investing in tools to enable more online shopping on its platforms.

The big exception

A company will not ask users if they want to follow up. Google has decided to stop using IDFA completely.

Although Google is losing access to data from other applications, it already has a large amount of data in its trustworthy application suite.

When an iPhone owner uses Google Search, Maps, Chrome, Gmail, or YouTube, Google can still use that data to build ad profiles without being affected by changes to Apple’s policies.

What does Apple have?

Apple has long had the privacy to become a key selling point of the iPhone, burning its first position in the market.

The changes also benefit them in other ways.

Without being able to sell the collected data to third parties, applications will have to resort to charging consumers their income. And Apple charges a 15 percent to 30 percent commission on all app purchases and subscriptions through the app store.

Meanwhile, Apple is also planning spread his A “privacy-based” advertising business.

I have an Android phone. Does that affect me?

Not for now. It is likely that Google will continue to operate in some way. Google is building “privacy-first” advertising on the desktop. It is likely to be a similar change to mobile applications.

[ad_2]

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button