App Tracking is Apple’s undoing
Last year, Apple introduced App Tracking Transparency, allowing iPhone and iPad to block ad tracking across other companies’ apps and websites. It’s a privacy feature that lets users opt out of having their data collected by various apps, which has been a hit with users. In fact, Gurman states that 78% of iOS 15 users disabled ad personalization. (By the way, here’s how to find out which apps track you on your iPhone.) However, you can still be tracked in Apple’s apps. As the report points out, the app tracking feature “does not follow you across apps and websites owned by other companies,” Apple states. Still, ad revenue is a big commitment Apple wants to pursue, and there’s be a restructuring of sorts. VP of advertising platforms Todd Teresi is again reporting to Apple Services head Eddy Cue, with Teresi previously reporting to Cue before 2016 when iAd was a thing (a now discontinued mobile advertising platform). Teresi aims to ramp up ad revenue annually from $4 billion to something in the double digits, hence the increase in ads across iPhone and iPad. In an earnings call, CEO Tim Cook still called the state of its ad business “great,” but there are a lot of pain points Apple needs to sort out to boost its ad revenue without upsetting customers. The good news is Gurman doesn’t anticipate Apple putting ads inside of third-party apps for the time being, but more ads are coming. Is it fair to put ads in apps on an iPhone that could cost around $1,000? Let us know your thoughts on Twitter and Facebook. We may not see this transition anytime soon, but we will see the iPhone 14 lineup possibly as soon as this September, and it’s looking like the Pro models may get a $100 price increase.
