A leader at the US Federal Communications Commission said he has asked Apple and Google to remove TikTok from their app stores over data security concerns. Here is the TikTok download page on an Apple iPhone on August 7, 2020.
Drew Angerer | Getty Images News | fake images
The Google-Facebook online ad duopoly may be breaking down.
According to a study published Tuesday by Appsumer, Apple is gaining momentum in digital ads, while Google and Facebook appear to be running out of steam.
The research, based on an analysis of the online ad budgets of more than 100 different consumer app companies, found that Apple’s ad business has benefited from the company’s major iOS privacy update in 2021, which that made it difficult for companies like Facebook to track users around the world. The Internet.
Apple Search Ads allow people to advertise on the iPhone maker’s App Store. The advertiser adoption rate for the second quarter rose nearly 4 percentage points from a year earlier to 94.8%, while Facebook’s adoption fell 3 percentage points to 82.8%, Appsumer said. Google’s rate decreased 2 points to 94.8%.
Apple has “joined the Facebook and Google duopoly in the top advertiser adoption table,” according to InMobi-owned Appsumer.
Shumel Lais, CEO of Appsumer, attributed Apple’s improved position to a rise in the number of app developers willing to pay big bucks to boost downloads. At the same time, Apple’s App Tracking Transparency (ATT) update has limited the amount of data ad-based apps like Facebook can use to help brands with their online ad campaigns.
“One of the things that’s quite interesting is that the ATT measurement limitations that are put on the broader network don’t exist in the same way for Apple,” Lais said. “So you could say that Apple has a little bit more visibility or an advantage in the other channels on iOS.”
Apple’s rise in online ads for developers reflects Amazon’s position in e-commerce, as retailers spend more money to promote their products on the site they trust to customers.
In terms of app developers’ overall spending on online advertising, called portfolio share, Google remains on top at 34%. Facebook is second with 28%, followed by Apple with 15%. Amazon was not included in the list because it is not a platform for developers.
At the lower end of the market, TikTok outperformed Snap, which has also been hit by ATT. TikTok has a 3% market share and Snap has 2%, Appsumer said.
Although it outperformed Snap, TikTok’s adoption rate fell nearly 7 percentage points in the second quarter. Lais said app developers are still trying to figure out which ads work well on the short video service.
“Perhaps brands are still adapting to make TikTok work for each vertical,” Lais said.
The numbers weren’t all bad for Facebook. Its share of the portfolio rose 4 points to 28% in the fourth quarter, indicating the social media company is seeing some “signs of recovery,” Lais said. In July, Facebook parent Meta reported a larger-than-expected drop in second-quarter revenue and said sales will fall again in the third quarter from the year-ago period.
Lais said that Facebook benefits from the chance of ads, versus Google and Apple, which serve ads based on search terms.
“Facebook still has unique properties and people have a mindset where they’re in a kind of discovery mode, so there are still opportunities there,” Lais said.
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