App Tracking Transparency (ATT), Apple’s privacy changes in the App Store, have boosted its ad business, and thereby, the iPhone maker has managed to break the Facebook-Google advertising monopoly in the online search market.
According to InMobi’s Appsumer, a performance insights platform, Apple Search Ads (ASA) joined the duopoly of Google and Meta at the top table of advertiser adoption as it grew adoption by nearly four percentage points (year-on-year) to 94.8%.
Meta’s ad adoption declined three percentage points in the same period to 82.8%. The trend also played out with share-of-wallet as Apple’s search ad business gained 5% points to reach a 15% share, while Meta declined four percentage points, still finishing significantly ahead with a 28% share.
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Meta also recovered share-of-wallet while comparing Q4 21 to Q2 22, suggesting that they are starting to recover from initial ATT headwinds. Google remained reasonably steady on both metrics as most of its inventory sits on the Android platform.
The question now is how much Apple can increase its search ad business share-of-wallet, given the fact that inventory is constrained by the volume of searches on the App Store.
Meta Founder and CEO Mark Zuckerberg have admitted that Apple iOS privacy changes will cost the company a whopping $10 billion in 2022. Meta has also accused Apple of favoring Google over app-based platforms like Facebook with its privacy policies. Apple’s iOS 14.5 update, released in April 2021, came with an ATT feature that has affected digital advertising for tech giants.