Apple decides to change the rules

On 2021 Apple released iOS 14.5, its big new software update for iPhones. It adds a lot of new features, but the one that’s been grabbing headlines is its new privacy change, which gives users more transparency and control over apps that want to track them for advertising.

IOS 14.5 includes the App Tracking Transparency framework, which is expected to have major implications for the way mobile advertising operates.

You’ll see a pop-up when you open an app that wants to access that your unique device ID for advertisers. That pop-up will ask if you want to be tracked and will show why the app wants you to opt in. For instance, an app might say you’ll get a better ad experience if you allow tracking.

Many companies that rely on online advertising have said the privacy change will reduce the effectiveness and profitability of targeted ads. Facebook has waged a campaign against the change and appears set to lose revenue as a result of it. But it’s not clear just how much. Analysts at MKM Partners said they believed in the second half of last year that Apple’s changes would have more impact but as of last week expected a “fairly fleeting and minimal fundamental impact on the ecosystem.”