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.
According to the analysis, Apple’s key iOS privacy update in 2021, which made it more difficult for companies like Facebook to follow users across the Internet, had a positive impact on the company’s advertising revenue. The results of the study were based on a review of more than 100 distinct consumer app companies’ online advertising budgets.
Through the Apple App Store’s search advertising, businesses can promote.
The adoption rate for advertisers climbed by almost 4 percentage points to 94.8%, but overall adoption of Facebook fell by 3 percentage points to 82.8% in the second quarter from a year earlier, according to Appsumer. Google’s rate decreased by 2 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, an increase in the number of app developers willing to spend a lot of money to increase downloads is the reason for Apple’s improved reputation. Apple’s App Tracking Transparency policy also limits the amount of information that advertising-based applications like Facebook can utilise to support marketers with their online ad campaigns (ATT) upgrade.
According to Lais, one of the most surprising aspects is that Apple is exempt from the same measurement limitations that ATT is for the broader network. As a result, you could argue that Apple has a slight advantage or greater visibility on iOS than other channels.
Apple’s spike in online marketing for developers mirrors Amazon’s position in e-commerce as businesses spend more money to advertise their products on the website they rely on for customers.
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.
TikTok outperformed Snap, which ATT had also severely harmed, in the low end of the market. TikTok and Snap each own a 3% market share, 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 figures weren’t altogether bad for Facebook. According to Lais, the social media firm showed some “signs of recovery” in the fourth quarter when its share of wallet grew 4 points to 28%. The parent company of Facebook, Meta, revealed in July that its revenue for the second quarter had dropped more than expected and that its sales for the third quarter would likewise be lower than they were at this time last year.
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 room for growth.