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Apple’s Ad-Targeting Crackdown Shakes Up Ad Market

Two years ago, Apple launched an aggressive battle against ads that track users across the web. Today executives in the online publishing and advertising industries say that effort has been stunningly effective — posing a problem for advertisers looking to reach affluent consumers. The Information reports: Since Apple introduced what it calls its Intelligent Tracking Prevention feature in September 2017, and with subsequent updates last year, advertisers have largely lost the ability to target people on Safari based on their browsing habits with cookies, the most commonly used technology for tracking. One result: The cost of reaching Safari users has fallen over 60% in the past two years, according to data from ad tech firm Rubicon Project. Meanwhile ad prices on Google’s Chrome browser have risen slightly.

That reflects the fact that advertisers pay more money for ads that can be targeted at people with specific demographics and interests. “The allure of a Safari user in an auction has plummeted,” said Rubicon Project CEO Michael Barrett. “There’s no easy ability to ID a user.” This shift is significant because iPhone owners tend to be more affluent and therefore more attractive to advertisers. Moreover, Safari makes up 53% of the mobile browser market in the U.S., according to web analytics service Statscounter. Only about 9% of Safari users on an iPhone allow outside companies to track where they go on the web, according to Nativo, which sells software for online ad selling. It’s a similar story on desktop, although Safari has only about 13% of the desktop browser market. In comparison, 79% of people who use Google’s Chrome browser allow advertisers to track their browsing habits on mobile devices through cookies. (Nativo doesn’t have historical data so couldn’t say what these percentages were in the past.)


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