“The internet is answering a question it has struggled with for decades: How does the Internet pay for itself?” he say.
The debacle could affect brands that rely on targeted advertising to get people to buy their merchandise. It could also hurt tech giants like Facebook at first — but not for long. Instead, businesses can no longer track people but still need more spendable ads for the biggest tech platforms, which still have the most data on consumers.
David Cohen, chief executive officer of Interactive Advertising, a trade group, said the changes will continue to “drive money and attention to Google, Facebook, Twitter”.
This change is complicated by the opposing views of Google and Apple about how much ad tracking should be rolled back. Apple wants its customers, who pay a premium for their iPhones, to have the power to block tracking altogether. But Google executives have suggested that Apple has made privacy a privilege for those who can afford to buy its products.
For many people, that means the internet can start to look different depending on the product they use. On Apple devices, ads may be only partially relevant to a person’s interests, compared to highly targeted ads within Google’s web. Brendan Eich, founder of Brave, a private web browser, says some websites that work well in Google’s browser may not even load in Apple’s.
“It will be a story about two interns,” he said.
Businesses that don’t keep up with the changes run the risk of going bankrupt. Increasingly, media publishers and even weather apps are charging subscriptions, the same way Netflix charges a monthly fee for streaming video. Some e-commerce sites are considering increasing product prices to maintain revenue.
Consider Seven Sisters Scones, a mail-order pastry shop in Johns Creek, Ga., that relies on Facebook ads to promote its items. Nate Martin, the bakery’s head of digital marketing, said that after Apple blocked some ad tracking, its digital marketing campaigns on Facebook became less effective. Because Facebook no longer has a lot of data on customers who like baked goods, it’s harder for stores to find interested buyers online.