In Graphic Detail: What Apple’s identity block means for the ad money
Apple's latest software update blocks identity resolution companies, affecting ad revenue. Publishers and marketers must adapt to new advertising methods.
Original reporting · digiday.com
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How this was written. GMS Agency Desk wrote this article with a language model from Digiday’s reporting (model: @cf/meta/llama-3.3-70b-instruct-fp8-fast); it describes that reporting rather than adding to it. The original, linked above, is the full story.
Key points from Digiday’s report
- Apple's software update blocks identity resolution companies, affecting ad revenue.
- Publishers and marketers must adapt to new advertising methods, such as contextual advertising.
- The block may have significant consequences for the ad tech industry, with some companies already feeling the effects.
Apple has reopened its feud with ad tech companies over identifying people on its devices, according to Digiday. The latest software update for iPhones has blocked several identity vendors, including ID5, LiveRamp, and Permutive.
Apple's block affects publishers, with browsers built on WebKit accounting for 30% of ad impressions and 28.5% of ad revenue. The update has led to a decrease in bid rates, with iOS bid rates falling 14% between September 15 and October 8.
The block may have significant consequences for the ad tech industry, with some companies already feeling the effects. The Trade Desk's ads stopped loading in the Safari browser initially, but the company has since received a reprieve.
Apple's move is seen as a push towards contextual advertising, where ads are targeted based on the content around them rather than individual user data. OpenX's numbers suggest that this shift is already underway, with buyers increasingly targeting ads based on content characteristics.
Permutive, one of the blocked companies, argues that the focus on IDs has been overemphasized. The company claims that IDs only cover about 30% of the bid stream, leaving a significant portion of publisher audiences unsold.
Apple's ad revenue is growing, albeit slowly, with the company expected to rake in $9.05 billion in 2026, according to eMarketer. The tech giant's ads business is becoming increasingly important, as it sits inside the services segment, which now accounts for 43% of Apple's growth profit.
Questions and answers
What is the impact of Apple's block on publishers?
The block affects publishers, with browsers built on WebKit accounting for 30% of ad impressions and 28.5% of ad revenue, leading to a decrease in bid rates.
What is the reason behind Apple's block?
Apple's move is seen as a push towards contextual advertising and a way to protect user privacy, as the company has spent years building its brand on a privacy stance.
How will the block affect the ad tech industry?
The block may have significant consequences for the ad tech industry, with some companies already feeling the effects, and a shift towards contextual advertising is expected.
