Apple Wins On Facebook And Google In Online Ads After iOS Change

The Google-Facebook online advertising duopoly may be breaking up.

– Advertising –

According to a study published Tuesday by Appsumer, Apple is gaining momentum in digital advertising, while Google (in English only and Facebook (in English only) seem to be losing momentum.

The study, based on an analysis of the online advertising budgets of more than 100 different consumer app companies, found that Apple’s advertising business benefited from the company’s major iOS privacy update. in 2021, making it harder for companies like Facebook to track users across the internet.

Apple’s search ads allow people to advertise on the iPhone maker’s app store. Advertiser adoption rate for the second quarter increased nearly 4 percentage points from a year earlier to 94.8%, while Facebook adoption fell 3 percentage points to 82 .8%, Appsumer said. Google’s rate fell by 2 points to 94.8%.

Apple has “joined the duopoly of Facebook and Google at the top of advertiser adoption,” according to Appsumer, which is owned by InMobi.

Shumel Lais, chief executive of Appsumer, attributed Apple’s improved position to an increase in app developers willing to pay big bucks to bolster downloads. At the same time, Apple’s App Tracking Transparency (ATT) update has limited the amount of data advertising apps like Facebook can use to help brands with their online advertising campaigns.

“One of the things that’s kind of interesting is that the ATT metering limitations that kind of get put on the wider network don’t exist the same way for Apple,” Lais said. “So you could say that Apple has a bit more visibility or an advantage over other channels on iOS. »

Apple’s increase in online developer ads reflects Amazon’s position in e-commerce, as retailers spend more money promoting their products on the site they rely on for customers.

In terms of app developers’ overall spending on online advertising, known as share of wallet, Google remains in the lead at 34%. Facebook is second with 28%, followed by Apple with 15%. Amazon was not listed because it is not a platform for developers.

At the lower end of the market, TikTok has overtaken SnapTikTok has 3% market share and Snap is at 2%, Appsumer said.

Even though it overtook Snap, TikTok’s adoption rate dropped almost 7 percentage points in the second quarter. Lais said app developers are still trying to figure out which ads work well on the short-form video service.

“Brands may still be adapting to make TikTok work for each vertical,” Lais said.

The numbers weren’t all bad for Facebook. Its share of the portfolio rose 4 points to 28% in the fourth quarter, indicating that the social media company is seeing “signs of recovery”, Lais said. In July, Meta, Facebook’s parent company, reported a bigger-than-expected decline in second-quarter revenue and said sales will decline again from the year-ago period in the third quarter.

Lais said Facebook benefits from the serendipity of ads, compared to Google and Apple, which serve ads based on search terms.

“Facebook still has very unique properties and people are in a mindset where they’re in discovery mode, so there’s still opportunity there,” Lais said.

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