I believe the basic reason Apple delayed implemening the proposed iOS 14 IDFA policy change is that Apple has their own ads business for promotion of app store installs which was using a device identifier in exactly the the same way as other publishers for conversion attribution. However permissioning for this sharing with Apple is controlled under a different "default on" setting under Settings > Privacy > Apple Advertising than the one proposed for IDFA which is case by case permissions request. From what i am given to understand, due to this dichotomy, ad networks threatend Apple with anti-trust lawsuits if they went ahead as a classic argument of using an advantage in one market (device and OS they control) to unfairly shut out competition in another (ads) could be made.
Now Apple will probably disable or remove this dichotomy in some way before they roll out the policy change but they probably will still have other problems. For instance their skadnetwork API [1] which they use for their app installs ads business and recommend to other ad networks supports only app installs conversion on their own app store and not other forms of conversion (eg. buying in e-commerce etc). But if they now restrict other forms of conversion attribution that used to be possible previously, could an argument again be made that they are using their dominance in one field to unfairly kill competition in another.
I think the only way Apple can implement this policy change without wading into an antitrust minefield is to completely give up their own ads business. But i suspect it's quite lucrative, otherwise why wouldn't they already have shut it down?
This is by no means a done deal. Let's get out the pop corn and watch the fun.
Yup very much so. Apple uses a logged in ID to run attribution for their own ads business but requires other ad businesses to use a different ID (IDFA). Till now, these were functionally similar so no one objected.
If they change the rules for others but not themselves, they'll face anti trust cases in the courts.
> I think the only way Apple can implement this policy change without wading into an antitrust minefield is to completely give up their own ads business.
I strongly agree with you:
Apple should stay away from ads business, not only for the antitrust, but to preserve dignity towards its customers and everybody else.
Apple cares about money, everything else is secondary. Advertising is a lot of money so they have no incentive to not try to take that part of the ecosystem over like they did with other parts.
Apple isn't altruistic, they simply found a slightly different equation for maximizing revenue than Facebook or Google. But don't confuse that with them being fundamentally different from their competitors.
I agree that this seems predicated on growing ad revenue:
1. strangle the effectiveness of FB/Google targeting and MMP attribution by removing IDFA
2. Build out ASA to fill the targeting void, which can be done via AppleID
3. Search Ads becomes more effective and useful, growing value
This is a pretty dicey strategy from an antitrust perspective, but the separation of the opt-in for tracking, and the focus on growing service revenue, suggests to me it’s the direction Apple is going
>a classic argument of using an advantage in one market (device and OS they control) to unfairly shut out competition in another (ads) could be made.
Is the market for advertising apps in the App Store the same market for advertising Facebook depends on?
How big is the share of share of ads shown on Facebook targeting people to install iOS apps compared with the rest of Facebook’s ad business?
Does Apple’s ad business for App Store installs follow customers around the web and collect data on them as a means to more effectively advertise iOS Apps?
Does Apple collect and use personal data on its users with the express intent to combine it in ways app marketers can leverage to more effectively target App Store advertisements?
Is there a dichotomy between these businesses if neither the market scope nor methods of personal data gathering and application match up?
Finally, and perhaps most importantly, does Apple design the device and OS to trigger customers into increasing their engagement with Apple products in order to create more opportunities to show customers personalized advertisements?
iOS users generally have quite high purchasing power. I suspect that even untargeted ads on Apple's ad network would still be quite valuable. Even just knowing the category of app an ad is displayed in (e.g. "Game", "Reading App") might be enough demographics to "target" reasonably effectively without tracking the specific user.
I believe the basic reason Apple delayed implemening the proposed iOS 14 IDFA policy change is that Apple has their own ads business for promotion of app store installs which was using a device identifier in exactly the the same way as other publishers for conversion attribution. However permissioning for this sharing with Apple is controlled under a different "default on" setting under Settings > Privacy > Apple Advertising than the one proposed for IDFA which is case by case permissions request. From what i am given to understand, due to this dichotomy, ad networks threatend Apple with anti-trust lawsuits if they went ahead as a classic argument of using an advantage in one market (device and OS they control) to unfairly shut out competition in another (ads) could be made.
Now Apple will probably disable or remove this dichotomy in some way before they roll out the policy change but they probably will still have other problems. For instance their skadnetwork API [1] which they use for their app installs ads business and recommend to other ad networks supports only app installs conversion on their own app store and not other forms of conversion (eg. buying in e-commerce etc). But if they now restrict other forms of conversion attribution that used to be possible previously, could an argument again be made that they are using their dominance in one field to unfairly kill competition in another.
I think the only way Apple can implement this policy change without wading into an antitrust minefield is to completely give up their own ads business. But i suspect it's quite lucrative, otherwise why wouldn't they already have shut it down?
This is by no means a done deal. Let's get out the pop corn and watch the fun.
[1] https://developer.apple.com/documentation/storekit/skadnetwo...