- App Tracking Transparency is a new feature in iOS 14.5 that allows users to turn off cross-app tracking. This affects Facebook and other digital ad companies in two ways.
- With their giant R&D budgets, Facebook and Google are better able to pivot on the near term challenges than smaller ad tech, but a larger long term threat looms.
- Digital ad companies also face large regulatory risks in North America, and Europe, still the source of over two-thirds of Facebook's revenue.
- The effects on Apple will be much more modest.
- App Tracking Transparency marks the beginning of a new chapter for digital ad companies.
For further details see:
Facebook Stock: Apple's New Privacy Update And What To Know