Study: After IDFA Tech Revenue Plummets
IDFA Effects Platform Revenue
New data out from Lotame finds a significant hit to revenue coming in from big tech platforms. According to their data the changes to privacy have meant a $16 billion decrease in revenue, with social giant Facebook taking the brunt of the losses.
“The effects of these changes on these companies are hard to isolate because all four players are still growing extremely strongly, still taking share from the last bastions of traditional media and gaining share in digital media as privacy regulations make it harder and harder for independent publishers and technologies to execute,” said Mike Woosley, Chief Operating Officer at Lotame. “To add to the complexity, the pandemic has introduced volatile and unpredictable gyrations in the pacing of media spend.”
What Is IDFA?
IDFA is linked to Apple’s closing out of mobile advertising IDs, the Identifier for Advertisers; last fall Lotame estimated the move would mean a near-$10 billion hit to social media brands including Facebook, YouTube, and SnapChat. Lotame is estimating that Facebook’s losses will account for more than 80% of the expected $16 billion in losses from 2022 revenue.
“As we move into the back half of 2022, we will no longer be talking about the impact the IDFA changes had on these players – by then 18 months hence”, added Woosley. “First, we may be moving into a recession. Next, there are other shocks affecting the industry. Third, we’ll be thinking and talking about the next wave of changes and the likely impact on these players (cookies, IP addresses and GAIDs). Finally, the companies themselves will be telling the market that workarounds and adaptations that they have advanced have cauterized the impact on the business.”
More data from Lotame’s report can be accessed here.https://www.lotame.com/idfa-and-big-tech-impact-one-year-later/
