Apple’s recent privacy changes for the iPhone are signs it may be tapping into an Internet advertising market dominated by Facebook and Google, said an analyst at RBC Capital Markets. Since April’s software update, most iPhones have allowed users to decide which apps can track user activity — important information that helps companies like Facebook deliver tailored ads to users and measure their impact. helps.
characteristic, which Apple Call App Tracking Transparency (ATT) has worried several digital advertising and mobile gaming companies, including Facebook, which it says has made it more expensive and difficult for brands to advertise on its platform. read more
“We see (the change in privacy) as a sign that Apple wants to compete in global advertising,” RBC analyst Brad Erickson said in a client note late Thursday.
According to Refinitiv data, Eriksson is rated four stars for the accuracy of its earnings estimates on Internet companies and recommendations. “(Apple) can use data privacy as cover while it invests in a search algorithm behind the scenes,” Erickson said, referring to potential ad revenue from search engines like Google.
If advertisers had “no choice but to fly blind with the loss of signal from Apple,” Google-owned YouTube and Amazon’s connected TVs could benefit as advertisers’ next best options, Eriksson said. . Evercore ISI analysts also pointed to Apple’s potential advertising ambitions in August, saying “disrupting third-party advertising” would give it a successful start in advertising. Still, he noted that ATT was for user privacy rather than monetization.
Apple, Facebook and Alphabet did not immediately respond to Reuters requests for comment.
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