As Apple adjusts its user privacy protection policy, US e-commerce Amazon has dealt with this change better than competitors Facebook and Snap and is expected to emerge as the winner in the digital advertising space.
Amazon’s vast customer purchase database reduces the reliance of its advertising business on user tracking information. After Apple adjusted its privacy policy, the iOS mobile operating system began to restrict the user tracking information provided.
JOIN US ON TELEGRAM
Alphabet’s Google also collects rich data on users’ search habits. Google’s ad revenue jumped 41% in the third quarter, indicating that companies that rely less on targeted advertising could bypass Apple’s restrictions on tracking mobile user information.
Amazon announces its financial report this Thursday but has not listed ad revenue, it placed it in an “other” business unit.
” Google and Amazon are not so dependent on cookies,” said Eduardo Cruz (Eduardo Cruz), business performance marketing manager at SupplyKick, a market research company.
“For brands that sell physical products, Amazon advertising is a powerful way to increase user purchases, increase consumer interest in products, and reach customers.”
In April of this year, Apple prevented advertisers from tracking iPhone user information without user consent, eroding the digital advertising market share once occupied by Facebook, Instagram, and Snap. Since then, Apple’s advertising business has grown substantially.
Data from the data company Data Report shows that most Facebook users access social networking platforms through mobile devices. In July, nearly 15% of adults used iPhones and iPads to open social media applications.
Twitter’s advertising revenue is in line with expectations. The company also relies on targeted advertising, but not as much as Facebook.
Wall Street analysts said that because most of the advertising business on Twitter comes from brands, rather than direct advertising, the company is in a better position than Facebook or Snap in overcoming changes in Apple’s privacy policy.
To be sure, as more consumers shop online and spend more time on social media, the digital advertising market is still growing exponentially. Google said that, like Facebook and Snap, Google’s YouTube has been hit to some extent in terms of direct and advertising.
“This is the beginning of a transition and will continue for several quarters,” said Andrew Lipsman, chief analyst of e-commerce marketing at market research firm Insider Intelligence.
“The strengths of different companies that we have seen in the past few quarters are still there, but some changes are starting to occur in the share of different players.”
