Online ad duopoly between Google and Facebook could be dissolving.
In contrast to Google and Facebook, Apple is gaining traction in digital advertising, according to a survey released by Appsumer on Tuesday.
The study found that Apple’s ad business has benefited from the company’s significant iOS privacy update in 2021, which made it more challenging for businesses like Facebook to track users across the Internet. The study’s findings were based on an analysis of the online ad budgets of over 100 different consumer app companies.Google and Facebook’s duopoly over online advertising may be breaking down.
According to a report published by Appsumer on Tuesday, Apple is gaining ground in digital advertising in contrast to Google and Facebook.
The data shows that Apple’s significant iOS privacy improvement in 2021, which made it harder for businesses like Facebook to track users across the Internet, had a favourable effect on the company’s advertising income. The study’s findings were based on an examination of the internet advertising expenditures of more than 100 different consumer app companies.
The Apple App Store allows users to promote via its search adverts. In the second quarter, the adoption rate for advertisers climbed by almost 4 percentage points compared to the same period last year, reaching 94.8%, while adoption for Facebook fell by 3 points, to 82.8%, according to Appsumer. Google’s score fell two points to 94.8%.
Apple has “joined the duopoly of Facebook and Google at the top table of advertising adoption,” claims Appsumer, a business owned by InMobi.
According to Shumel Lais, general manager of Appsumer, a growth in the number of app developers willing to spend a lot of money to encourage downloads is the reason for Apple’s improved reputation. Apple’s App Tracking Transparency (ATT) update has also limited the amount of data that ad-based applications like Facebook may utilise to aid marketers with their online ad campaigns.
According to Lais, one of the most exciting features is that Apple is exempt from the same measurement limitations that ATT is for the broader network. As a result, you may argue that Apple has a little advantage over other sources on iOS or is more visible.
As retailers spend more money to advertise their items on the website they depend on for customers, Apple’s increase in online marketing for developers provides a counterpoint to Amazon’s dominance in e-commerce.
With 34% of the total amount app developers spend on online advertising, often known as share of wallet, Google is still in the lead. Facebook is second, with 28%, to Apple, which is third, with 15%. Amazon was left out since it is not a platform for developers.
At the lower end of the market, where ATT had previously struggled with Snap, TikTok outperformed Snap. TikTok and Snap both own 3% of the market, according to Appsumer.
TikTok outperformed Snap, although its adoption fell by more than 7 percentage points in the second quarter. Lais claims that app developers are still learning which ad formats work best for the short video service.
According to Lais, brands can still be making modifications to make TikTok suitable for any industry.
The numbers weren’t altogether bad for Facebook. According to Lais, the social media industry showed some “signs of recovery” in the fourth quarter as its share of wallet grew 4 points to 28%. In July, Facebook’s parent firm Meta announced that its third-quarter sales would be lower than they were at this time last year and that its second-quarter revenue had declined more than it had planned.
Lais asserted that Facebook profits from the unpredictability of adverts, in contrast to Google and Apple, which display advertising based on search terms.
According to Lais, Facebook still has a lot of unique features and users are still in a kind of discovery phase, so there is still space for development.