The world of internet
advertising is boosted by an update of the Software powered by a billion
iPhones on Monday, with an increased privacy risk. Apple will begin requiring
app makers to tell users what information they wish to collect to track and
obtain permission to do so, by displaying the so-called 'privacy
nutrition label.' Apple's work over the last months led to a large gap
between Facebook and other technology competitors and could have important
implications for data protection and the mobile ecosystem. Digital
advertisements are the livelihood and payment of free online content and
services for internet giants such as Google and Facebook.
An update to iOS
software which powers iPhone, iPad and iPod devices includes a
"Transparency App Tracking Framework," which prevents apps from
tracking users or accessing a device without permission that identifies data. Apple
told to the developers this week in an online message: "Only if the
user gives you permission to enable tracking, the advertising identification
value of the appliance will be all zero and you cannot
track it." According to Apple, “the requirement that some developers
have adopted early is applicable to all iOS apps as on Monday. The use of
digital mobile advertising cannot be ignored through the definitions of Apple
as 'tracking' — the mobile business model should explicitly remove it from the
ecosystem." A shift to the mobile operating system that could
potentially hamper the effectiveness of digital ads might be significant with
over one billion iOS powered devices in active use worldwide. Platforms like
Facebook or Google that rely on advertising are generally only payable if
somebody does something like clicking on a marketing message. Announcements
became irrelevant because users are less familiar with them which
could mean less clicks and less revenue.
Mobile applications
and more broadly speaking, the Internet have flourished through
information, games & driving instructions and is free of charge. While
people with iPhones may allow tracking, marketers fear that many will choose to
keep privacy alive. In an earning call in early this year, Facebook warned that
Apple is likely to tighten its target ads with its changes to its mobile
operating system. Facebook CEO Mark Zuckerberg told us that, with a rival
smartphone messaging service and tight grip on the app store, Apple is now one
of his most prominent competitors on the iPhone. "Apple has every reason
to use its dominant platform to stop the frequent work of our apps, as well as
other applications," Zuckerberg said. "Apple may say that they help
people with this but the movements clearly monitor their competitive
interests." The social networking giant argued that the new data
collection and targeted ad measures by the iPhone maker would harm small
companies.
"Whatever is good
for the consumer and good for the brands, advertisers have to be important
to people without stalking them," Creative Strategic Analyst, Milanesi
said. "Transparency is always something we should aim for, I
think is right for Apple." Milanesi added.