Apple's New Privacy Deal This Year: Who Loses And Who Wins? Have Users Got Rid Of Data Tracking?

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A year ago, when Apple updated the much anticipated new privacy deal, it also specially put in an advertisement to intuitively illustrate the function of this function through video. This advertisement describes an ordinary person's one-day experience: whenever he interacts with an enterprise, an employee of the enterprise will entangle him and collect and disseminate his personal information anytime, anywhere.

While this person is troubled, iPhone A prompt appears on the, providing the option of "ask app not to track". After he clicked this button, all the uninvited guests turned into ashes and disappeared in front of him.

Although this advertisement is easy to resonate with users, it is not accurate. This feature, called app tracking transparency (ATT), will not completely block all tracking behaviors of enterprises to users in Internet and mobile applications, because Apple can't and doesn't want to do it. User data will still be collected, but the type and method of collection will change. However, the final result is almost the same: you will still be accurately targeted by advertising.

This is not because att doesn't work. Its real role is not only limited, but also difficult to be understood by most iPhone users, because the whole process is realized by inserting a few lines of code into the opaque world of advertising technology. For many people, the only obvious change is that when you open the app, you sometimes prompt "prohibit app tracking".

But under this appearance, many changes have taken place. Data is the basis for the survival of the mobile advertising industry, but att suddenly cut off one of its data streams and subverted the whole industry. Over the past year, enterprises based on this have been struggling to explore various alternative measures and re plan strategies. In contrast, enterprises that do not rely on these data are stronger than ever.

From the perspective of user privacy, launching att seems to be a good thing. It's just that it's not as good as apple.

Privacy policy adjustment, gains and losses brought by Apple

Att was launched to address privacy issues. But apple is "to blame" for this problem. As early as before the birth of the iPhone, the Internet was full of various user information tracking mechanisms, but the iPhone and its third-party applications made user data show a blowout growth. People carry mobile phones anytime and anywhere, almost everything can be handled by mobile phones, and they will be online at any time. While this technology brings convenience to people, it also makes it easier for mobile applications to collect and cash user data.

Today, the scale of the mobile advertising industry is very large. First, collect user information through mobile devices, then draw user portraits based on these information, then put accurate advertisements according to the portraits, and finally measure the advertising effect. Many tracking activities occur without the user's awareness.

For example, meta, the parent company of Facebook and instagram, has implanted tracking programs in millions of third-party applications and websites to associate the behavior of a device in an app with the behavior of the device in other apps tracked by meta, and even with the Facebook or instagram account of the device holder. In this way, enterprises can put accurate advertisements on applications and websites embedded with meta tracking program.

But few people want to be watched. Apple also does not want other companies to use Apple devices to monitor Apple users, nor does it want to use its own data to pave the way for the expansion and strength of third-party business. Given that Apple has been trying to plastic its corporate image that attaches importance to privacy, this situation is obviously disadvantageous. Moreover, as a technology giant, meta is also one of the major beneficiaries of data collection. Att can prevent one of many tracking methods without causing any harm to apple.

Att gives control of the unique serial number of the device, that is, the advertiser identifier (IDFA), to the user. When using different apps, the tracker can identify the device with the help of IDFA, so as to associate the user's activities in different apps with specific devices. From the update of IOS 14.5 system in April 2021, apple devices will no longer send IDFA unless users agree to be tracked. At present, this function runs in full accordance with Apple's commitment.

"User data belongs to users. Users should decide whether to share it and with whom." An apple spokesman said, "on IOS and iPad In the OS operating system, apple allows users to decide whether to allow apps to track them through other companies' apps or websites. "

Ways to bypass att in violation of regulations

Att has two major limitations. If the user chooses to prohibit tracking, it means that sending IDFA to the outside world is prohibited. However, enterprises can still track it across applications by other means. Apple only limits IDFA, not other ways, and Apple's own advertising business will also use other ways.

For example, "fingerprint identification". This requires collecting as much seemingly harmless device information as possible, including device name, model, user settings, IP address and operator. Combining these details may be enough to distinguish different devices, so as to effectively replace IDFA. Although Apple's app store policy prohibits this behavior, it cannot be prevented technically. Users can only rely on Apple's policy implementation, but it is reported that Apple's implementation is not strict.

"It's a bit like a cat and mouse game." Some researchers said that some apps can still collect device information and use it as a basis to distinguish users. "Apple can control the tracking on user devices at most, but it can't control the behavior within the data company.

History has proved that no matter how blocked, professional user data collection companies can always find a breakthrough way to continue to collect user data.

"Browsers try to add more privacy protection, such as blocking third-party tracking cookies, while people who want to track users will design new tracking mechanisms to avoid continuing to rely on obsolete or blocked technologies. It's like a military competition," said researchers at the University of California, Berkeley

The lesson for users is: don't think you can get rid of data tracking just because Apple launched the shielding function.

Compliance bypasses att

Understand how Apple's anti tracking function affects user privacy and how it will affect enterprises that rely on data tracking. The answer is simple: such companies generally resist Apple's new privacy deal.

Apple said it did not know how many users refused to be tracked. The calculation results of different institutions are also very different, but most institutions believe that the vast majority of users (hundreds of millions) refuse to be tracked. Therefore, although trackers can still obtain device level data from Apple users who have not refused and Android users (at least before Google launched its own anti tracking function), they still face huge losses.

A senior practitioner said, "this has subverted the field of mobile marketing. Marketers must now break their dependence on user data."

Some companies even turn to e-mail marketing, which is traditional paper mail. Because Apple is also cracking down on email based tracking. Some enterprises believe that meta's advertising budget has been reduced because the advertising effect of its platform is getting worse.

Zachary Ehrlich, director of Internet paid advertising at doctors, said customers were being encouraged to use Google search advertising. For customers who insist on using Facebook, he will embed tracking phone numbers in advertisements to judge whether they have received returns through these advertisements, because meta's feedback is no longer as accurate as before. Jon Shanahan, co-founder and chief marketing officer of male skin care brand stryx, said that the advertising budget was originally allocated to meta and tiktok platforms. But since last August, he has allocated all the budget to tiktok.

"In the past, one dollar invested on Facebook could get a return of five or six dollars." "What about now? It's good to have a one-to-one rate of return," Shanahan said

It is not the only company that has been hit by the introduction of digital advertising because of its huge size.

Meta insisted that att would damage its business. But it mainly claims that this move will harm small businesses that buy advertising through meta. The actual situation... Is well known. The result is true. Although meta's advertising business is still growing and creating huge profits, the growth rate has slowed down. This is a very dangerous signal for meta, a huge ship that relies heavily on advertising.

Meta said, "despite Apple's adverse policies, we will continue to adjust the system to make enterprises succeed, respect privacy, and share the measures they can take to optimize the performance and measurement of advertising on our platform."

Fortunately, there are other ways to track users in compliance with Apple's policies. Apple does not allow enterprises to continue to track and locate users across applications at the specific device level, but they can still track and locate users as a whole. In other words, although enterprises cannot continue to locate a specific user, they can still locate a group of users anonymously. (floc based programs have not been successfully tried to replace Google's.)

"Situational" advertising can also be launched. Although this model is not new, it has regained favor in the case of a relative lack of user level data. This is not just because ATT, the introduction of privacy laws and the demise of website cookies have also played a role. Situational advertising will put corresponding advertisements based on the content users are viewing. For example, if you are using the fitness Bracelet application, you may see fitness equipment advertisements.

"Walled garden" is becoming stronger and stronger

Some tracking has been promoted as never before. Apple does not prohibit enterprises from tracking users (i.e. "first-party data") on their own platforms, nor does it prohibit enterprises from using these data to accurately advertise on their own platforms. Even apple itself is doing the same. Many enterprises that do not have their own first-party data sources are now stepping up the construction of databases or acquiring such data by merging with other companies. For this reason, more and more enterprises strongly recommend or even force users to create accounts before using their services.

"A retail company can advertise directly on Amazon. Because everyone logs in, they have enough data... It won't be affected. These walled gardens will only become stronger," analysts said

As a user, if you know who is collecting your data, what data is collected and what is the purpose, you may not care much about the first-party tracking behavior. If you know who the other party is and what the deal you have reached with the other party is, you will even be willing to exchange your data for free services, but you don't want your application data to be sent to the company behind it without knowing it.

But this model will also have some unexpected consequences. The companies that benefit most from the rise of first-party data and the decline of third-party data are the companies with the most first-party data, which are often the world's top enterprises, such as Google and Amazon.

Apple's fast-growing advertising business is also the first-party data used. Companies affected by Apple's privacy policy are very angry about this. In response, a report commissioned by Apple pointed out. Att is not the only factor affecting these enterprises.

Others worry that with the increasing value of first-party data, the already powerful walled garden will gain more power. Big brands and large enterprises have enough resources to adapt to change, while small enterprises do not. Diana Lee, CEO of constellation, an advertising technology company, believes that this means that they will rely more on walled gardens than ever before and will be left behind by giants with more obvious advantages.

"On the whole, this will create more monopolies. The monopolists may be technology giants or large brands." She said.

The existing monopoly position may also be strengthened. Apple itself is also facing antitrust pressure, and many countries will introduce laws against the app store (but Apple denies violating the principle of competition).

Now, apple just slightly adjusted the policy, overturned the whole industry and completely reversed the fate of many enterprises. It is true that these enterprises may not have taken such consumer disgusting behavior from the beginning, but Apple's power and control are clearly reflected in this privacy policy adjustment.

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