Major social media apps including Facebook, Snapchat, Twitter and video giant YouTube lost a combined $9.8 billion in the past two quarters following Apple’s App Tracking Transparency policies.
While it’s a significant hit, it’s a lot less than Facebook’s predicted 50% drop in revenues across the Audience Network.
Facebook, which among the examined apps has the largest market share when it comes to ad revenue, saw revenues drop 13.2% while Snapchat also noted a 13.2% decline. YouTube and Twitter suffered smaller ad revenue drops at 7.7% and 7.4%, respectively.
As Mike Woosley of data management company Lotame points out advertisers may lose 50% of their ad investment because they’re no longer able to target audiences as precisely as before. That means they’re often left having to target twice the number of consumers.
The changes require giants such as Facebook to completely revamp their ad infrastructure and build new tools.
What’s more, advertisers have begun to move away from Facebook due to lower ad power and stronger results on TikTok.
While Twitter and Google appear to have been less affected by the changes, it remains to be seen how Facebook will cope.