Apple Could Create Monopoly Over ‘Ad Space’ With iOS 14.5 App Tracking Transparency

ios 14.5 app tracking transparency

Apple released iOS 14.5 to the general public yesterday. The update brings a new feature called App Tracking Transparency, making it difficult for advertisers to track a user’s app usage. A new report from the Wall Street Journal now claims that Apple could take unfair advantage of this situation and create a monopoly over ‘Ad space.’

Until now, advertisers were able to track app usage, resulting in targeted ads to users, and thus, generating more revenue. With iOS 14.5, Apple gives an option to the user that prevents advertisers and developers from tracking his or her app usage. A report from Wall Street Journal claims Apple can still serve personalized ads, even if the user opts out of app tracking.

In case you’re wondering how this works, click here to know how iOS 14.5 App Tracking Transparency works, and how to enable it.

It claims that if the advertisers buy Apple’s ad space, advertising agencies would get more about data ad performance in comparison to ads bought by third-party ad agencies.

“The difference could eventually give Apple’s small but growing ad business an edge over rivals, ad executives and app makers say.”

If the user opts out of ad tracking, third-party agencies would not be able to provide any kind of data, or very minimal data that too after ‘some weeks.’ But, if the companies buy ad spaces from Apple, not only they would get real-time data, but they would also not have to worry about the user opting out of ad tracking.

“Advertisers who buy Apple ad space can receive more data about user behavior, the people said. They can learn which version of their ads users saw and which search keywords ads appeared on, they said. Those advertisers will get results in nearly real time.

Apple is planning to expand its ad offerings and is testing a new ad slot that will be available in the App Store’s “Suggested” category, which could be targeted based on users’ interest and audience data, the people familiar with Apple’s ad products said.”

Developers are naturally going to be attracted by Apple’s offering, thus increasing ad revenue for Apple. This would also establish a monopoly for Apple over ads in iOS since developers would refrain from opting for third-party ad agencies.

Have you updated to iOS 14.5 yet? What features do you like? Did you enable App Tracking Transparency? Drop a comment and let us know!

[Via Wall Street Journal]