How strong is Apple's Privacy & security branch?

Apple’s new privacy policy: Why consumers should be relieved, and marketers should be worried.

Digital marketing, one of the top industries of 2021, has a major hurdle beginning to come its way. In recent weeks, as part of its iOS 14.5 software update, Apple Inc. introduced a feature called App Tracking Transparency. This new feature is an addition to the privacy policy of apps on the app store. App developers and marketers now have to receive permission from Apple users to be able to track the individual user’s data, and the user has the opportunity to opt-out if they choose. The privacy feature is still new, so there is no way yet of telling how every consumer will react, but it is likely not in favor of marketers. The question to consumers is: Now with the opportunity to opt-out, are you still willing to put your personal information in the hands of advertisers? Some consumers may agree because they like receiving personalized ads informing them of things like upcoming events in their area or sales and new arrivals at the places they shop, but most will likely say no. This ultimately spells trouble for marketers, advertisers, social media companies, and the future of digital marketing. 

So how does App Tracking Transparency work exactly? After downloading the iOS 14.5 update, Apple users will receive a pop-up in an app that they use or download saying: “Allow [the app you chose] to track your activity across other companies’ apps and websites? Your data will be used to measure advertising efficiency,” and then prompts the user to select “Ask App Not to Track” or “Allow.” Apple also personalizes this message to the individual app and the information that they collect. This pop-up is detailed and essentially exposes the data breaching aspect of the advertising industry to all consumers with an Apple device. Any marketer or advertiser who wants to advertise through Apple user data must agree to track users and use their data only if you receive definitive permission from the individual user, or if the user chooses to select the “Allow” option. 

To make matters even worse for marketers and advertisers, Apple released an informational advertisement video on YouTube, explaining its new privacy feature, how it works, and how and why the digital marketing industry is stealing your information. They also explicitly say that “you become the product," as your detailed data profile is shared with third-party businesses without your knowledge or consent. Now you can begin to see why marketers should be very concerned. 

The digital marketing world has generated billions of dollars in advertising from user data breaching and ad targeting. Marketers take users’ information, such as their age, location, health information, spending habits, and browsing history to generate effective advertisements on the websites that the user browses and their individual social media pages. Say that you are shopping online or through a mobile app, do not make any purchases, and go on Instagram shortly after. It is no coincidence if an advertisement for that same brand or company appears on your Instagram as you are scrolling through your feed. Your digital profile and personal data that marketers collect are what is behind these incredibly timely and accurate advertisements. It can certainly make some consumers uncomfortable, but it has been a very effective advertising tactic in digital marketing. App Tracking Transparency will limit the amount of data on Apple users who choose to opt-out of giving their information, and advertisements will be less accurate and more difficult to curate. 

Data breaching and consumer profiling for advertising purposes is a major privacy issue that marketers have been keeping on the down-low for many years. Until iOS 14.5 and Apple’s new privacy policy were released, the average Apple user was not informed of what information of theirs was being used, how it was being used, or for some, that it was even used at all. Apple’s App Tracking Transparency, in itself, is also a marketing tactic for them. Truth is, every consumer wants to feel safe with the products that they use, and Apple is providing that. The new privacy feature makes Apple look good in the eyes of all of their consumers, and other companies, especially their competitors, look worse. 

The popular social media platform, Facebook, is taking a significant hit from Apple's new privacy feature. Facebook is not just a social media corporation, it is also one of the largest social media marketing and advertising platforms. Facebook advertising has been a consistent revenue generator for the company and its business is centered around retrieving user’s information and using it for themselves or sending it off to their clients. The social media giant has been increasingly dependent on advertising through consumer data profiling and is predicted to take a 7% loss in sales in the upcoming months. As you could probably guess, Facebook is not taking the release of Apple's Tracking Transparency well. Facebook and many other big names in digital marketing believe that Apple created App Tracking Transparency more for the company’s gain and positive publicity than looking out for their consumers’ safety. Apple and their new privacy policy is forcing major companies like Facebook to limit their consumer data profiling and will give Apple more power in their consumer targeting. 

While no one can know for sure what Apple’s true intentions were in creating their new privacy update, this will be a continual ongoing feud between Apple and the rest of the digital marketing industry. If this privacy policy is simply a marketing tactic to polish Apple’s image, as Facebook and other marketers believe, it is certainly proving to be smart and effective. Through

This new privacy policy feature, Apple is being the first to blatantly tell consumers that their privacy is being invaded by marketers, even though it has been going on for years. Apple hopes that consumers will feel safe with their new privacy policy, be proud Apple users, and possibly look down on some of their competition in the digital marketing industry. It is still early to determine for sure how the future of App Tracking Transparency will play out, but one thing for sure is that it is not looking good for the digital marketing industry. 

Sources 

Tenreiro, Daniel. “Apple's New Privacy Policy Shaking Up Ad Industry.” National Review, National Review, 29 Apr. 2021, 

www.nationalreview.com/2021/04/apples-new-privacy-policy-shaking-up-ad-industry/. Wamsley, Laurel. “Apple Rolls Out Major New Privacy Protections For IPhones And IPads.” NPR, NPR, 26 Apr. 2021, 

www.npr.org/2021/04/26/990943261/apple-rolls-out-major-new-privacy-protections-for-i phones-and-ipads. 

**Apple video embedded on this site is also used.

This article was strictly created for Herdlein LLC and cannot be used without the company or authors permission