According to a report by data solutions provider Lotame, Apple’s privacy-protecting Identifier for Advertisers (IDFA) is estimated to cost tech companies $16 billion in the coming year, a 9% rise from last year. However, according to a separate academic study, businesses already have workarounds.
IDFA is a unique device identifier assigned by Apple. It allows advertisers to track users in order to deliver personalized advertising while protecting personal information. Google Play Services ID for Android is the Android equivalent. Lotame estimated IDFA would have a total financial impact of $10 billion on Facebook, Twitter, Snap, and YouTube last fall, with Facebook accounting for more than 80% of that.
Lotame anticipates that Facebook will be the biggest loser again next year. It expects the company to lose $12.8 billion, with YouTube losing $2.1 billion, SNAP losing $546 million, and Twitter losing $323 million. According to a new report, while IFDA has made tracking more difficult, businesses appear to be finding ways around it.
The report will be published in June by Oxford academics Konrad Kollnig, Max Van Kleek, Reuben Binns, and Nigel Shadbolt, along with independent US-based researcher Anastasia Shuba (a draft version is available). The team examined 1,759 apps before and after Apple implemented its security measures.
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While tracking was reduced, there was little change in app tracking libraries, which track usage frequency and activities. Even more troubling, many apps continued to collect tracking data despite users’ requests not to be tracked. The researchers also discovered evidence of app makers using server-side code to fingerprint users, collecting device and usage data to create a unique identifier to track the user.
Apple is one company that the IFDA is helping. According to market analyst Omdia, its Search Ads program, which prioritizes placement in the App Store, will grow by $3.7 billion in 2021, a 238% gain over the previous year.
Countless people are opposed to data collection (who also want personalized CX, go figure). That is why Apple and Google (among others) have worked to safeguard personal information. It was inevitable that some businesses would try to avoid this. This will almost certainly come back to bite them, as Apple and Google do not appreciate companies that break the rules.
