Apple Privacy Policies and E-Commerce Companies

Apple has recently introduced a privacy change restricting how users are tracked on mobile devices. The company Plum Seller, a loose leaf tea brand, used to gain a new customer for every $27 spent of Facebook and Instagram Ads.

Now they’re spending as much as $270 to pick up a new customer.

This change is disrupting the online advertising market, specifically smaller ecommerce companies and creating obstacles for tech companies such as Facebook and Snap Inc.

The new Apple security measures allow users to completely opt out of tracking or limited tracking, making it harder for companies to target ads to consumers.

Many small companies are struggling to get their new companies publicized since ad prices have since gone up on social media sites, for example Facebook’s ad prices have risen 25%.

Many companies are cutting their advertising budgets in half on Facebook and focusing on other marketing of their brands, such as email marketing, or TikTok marketing as well.

The new Apple security measures are to allow users decide who and what their share their data with but in turn has also made it harder for companies to reach new potential customers.

https://www.wsj.com/articles/apples-privacy-change-is-hitting-tech-and-e-commerce-companies-11634901357?mod=tech_lead_pos6

10 thoughts on “Apple Privacy Policies and E-Commerce Companies

  1. I fully believe that this was an incredible decision by Apple. It was a huge win for privacy, and I hope other companies follow Apple’s lead. I fully believe that the privacy of the consumer usurps the outcries of companies whose marketing budgets need a raise. Cry me a river. This hurts Facebook and Instagram very much, which I am always in favor of. I hope the same thing happens to TikTok and streaming services as well, specifically YouTube. Returning privacy will always be the number one priority in my book.

    https://www.reuters.com/technology/what-do-apples-new-iphone-privacy-changes-mean-consumers-businesses-2021-04-26/

  2. I really thought this was interesting because I think people will appreciate having their own privacy now. I just had no idea that the repercussions of this meant that target local ads and larger company ads have to now pay more money to release advertisements. I noticed however that on Hulu or TikTok I have had a lot more big ads pop up especially local ones in the State College area and I’m wondering if that has to do with this new privacy policy. Personally though, I know every time we are online there is something out there that is collecting our data. I just feel as though we as people deserve to have privacy online and not have our information collected just for targeted ads because the majority of the time the ads become an annoyance or distraction instead of actually making people want to go buy their products. I think there are just too many disadvantages to posting online ads and now with increased prices per ad, I really don’t think they’re worth it.

    https://smallbusiness.chron.com/disadvantages-online-advertising-options-10212.html

  3. Apple’s new privacy policy will enhance protection for its loyal customers. Customers such as myself expect a moral level of protection, yet Apple has not given us this form of safety, but rather exposure. With an increase in social media users, protected activity is not a given anymore.

    Specifically, Google’s search algorism has been watching each click; these platforms have everyone’s identity for their own profit-driven needs. Something we spoke about in the lecture was the Social Dilemma; if you are not buying the product you are the product. Recently, customers of Apple have realized the lack of security and so the feedback was a new set of policies. Although these policies will decrease the targeted advertisements used on Facebook, protection for the users is most important.

    The article states that Facebook’s revenue could take a 7% hit due to the new privacy controls, says mobile expert Eric Seufert. Tracking features are also new and important. Now, Apps are asked for permission rather than granting them the right to track you as an individual. Also, the article states that tracking (privacy feature) affects less than 5 percent of Facebook’s $84 billion annual ad revenue — but it’s still a noticeable chunk of change, especially considering that Facebook’s internal estimates reportedly expect around 80 percent of iOS users to opt-out. The main goal of the new features is to make customers feel as comfortable as possible. Since many companies and platforms may suffer from these new changes, I think there will be a social media decline.

    https://www.theverge.com/2021/4/27/22405474/apple-app-tracking-transparency-ios-14-5-privacy-update-facebook-data

  4. Although Apple’s privacy policies may hurt large companies and corporations, it is the right decision to protect the consumer population. As we talked about in class, privacy is one of the biggest concerns on the internet. Most people tend to be wary about putting too much about themselves online and take drastic measures to protect their virtual identities. This can be from updating passwords, creating private storage folders to store data, or refusing apps to track online activity. Online tracking today has been taken to a scary extreme. A program like Google Analytics has our every move on the internet down to a science, as it looks at our likes, dislikes, and browsing history. Using this information, companies can present us with advertisements that they believe that we would like depending on what we search for on the internet. While this is useful for advertisers, it hurts the consumers like ourselves. Apple’s new privacy policies are a great tool for common consumers because it explains what third party applications use our data for and why they do. Not many people understand why these companies need to track them whenever they go on the internet. According to this article, Facebook’s revenue could take a 7% hit due to the new privacy controls, says mobile expert Eric Seufert. In addition, it was said that Apple’s new privacy policy is the needed change in the current online atmosphere.

    https://www.npr.org/2021/04/26/990943261/apple-rolls-out-major-new-privacy-protections-for-iphones-and-ipads

  5. I think that this article was very informative on Apple’s new privacy change where is restricts how users are tracked on mobile devices. I did not realize the effects of Apple allowing users to choose whether or not they want to be tracked would affect advertising companies. When I first heard about Apple giving their customers the option to ask apps not to track in IST 110, I thought it was an amazing idea. It makes the costumer feel a sense of safety knowing that they are not being tracked crossed their devices.

    I looked up an article about this, and a former Apple engineer says that this question that every app asks now gives the users a false sense of privacy. The reason why it is a false sense of privacy is because if a person clicks for the app to not track, apps still collect personal information on the user. Overall, I did not know that advertisers have to now spend more money to get costumers due to this new privacy change.

    Towey, H. (2021, September 24). Former Apple Engineer says the button on iphones asking apps not to track you is a ‘dud’ that gives users a ‘false sense of privacy’. Business Insider. Retrieved October 25, 2021, from https://www.businessinsider.com/apple-iphone-privacy-initiative-ask-app-not-to-track-study-2021-9.

  6. While this can be a concern for smaller companies trying to get their name out there, my opinion is that the customer’s privacy concerns should be priority over the advertiser’s desires. It makes sense in supply and demand terms that ad slots are becoming increasingly expensive because there are fewer targeted ads going out to consumers. I think that Apple’s privacy measure is a huge step in online security. According to a Bloomberg article, about 75% of iPhone users downloaded the new software update in the summer with the new “ask app not to track” feature, which sent companies into a spiral. This change will have a long-term effect on the number of ads running on customer’s devices and could cost smaller companies without the means to fund the losses to experience severe financial worries.

    Source: https://www.bloomberg.com/news/articles/2021-07-14/facebook-fb-advertisers-impacted-by-apple-aapl-privacy-ios-14-changes

  7. Apple has put up its mark and raised its standards again. I feel privacy is a basic necessity to everyone. People should be given their own space, and companies need to learn respecting customer’s private life. Facebook and Google are using a lot of filters and algorithms, that use your activity and browsing history and update your ad and shopping preferences automatically. I personally feel that this is the invasion of privacy. Customers should come first then the business profits. People need to get and gain information without any filters, and should be given their own choice of selecting what to watch, what to buy etc. People’s personal data should not be used and they should also be respected by providing them a filter bubble free e-world. And, Apple should be thoroughly appreciated for their excellent feature and service.

    References: https://www.the-future-of-commerce.com/2021/04/21/apple-privacy-changes/

  8. In my opinion, the customer should always be more important than the corporation. The corporation should make sure they are putting the consumer first. If not, the consumer could feel unimportant and stop buying from that company.

    I know that we talked about this topic in class and how Apple was incorporating the pop-up message where that ask you if you want to allow the app to track you. I know that in class we talked about Facebook and Apple having issues with each other. Apple wanted to incorporate transparency, but Facebook did not.

    In an article I found, it mentions this idea, but more so mostly about Facebook. It mentions that even if you turn off the setting in your settings that allows Facebook to track you, Facebook still has its ways of tracking you. There is no way around this. This personally makes me feel very uncomfortable being a Facebook user and I do appreciate Apple’s effort on making their consumers feel more safe.

    https://www.forbes.com/sites/zakdoffman/2021/10/23/apple-iphone-users-delete-facebook-app-after-new-tracking-warning/?sh=75c30a665930

  9. Apple’s feature of removing the ability to track users who choose to not be tracked is an important step towards the nonexistent data privacy regulation that exists in the US. The downside, which privacy advocates don’t exactly understand, is that the way the Internet has evolved has made it such that the services we use are expected to be free. To thrive, these companies rely typically on advertising. The concept of targeted advertising is what’s at stake here. Targeted ads are extremely effective, keeping advertising costs low, and acquiring customers at a low price tag not to waste a penny of a company’s ad budget. Advertisers make more money, and the online services make money like Google and Facebook. The article said that only 16% of people allow apps to collect tracking data when using the Apple feature. This is unsurprising with the alarming message Apple provides its users. Of course I don’t want this app to track me! But consumers would be unhappy if this meant they’d need to start paying for services that are free, paid for by their data. We discussed in class the ethics of data collection, maybe Apple is taking this responsibility for other companies, but ultimately, I see it as a way for Apple to advertise how privacy-centric they are, gaining consumer trust in their own product.

    https://mashable.com/article/apple-privacy-policy-advertising-increase

  10. I think that even though this may slightly hurt huge corporations, it is overall a step in the right direction.

    In my opinion ad tracking goes way to far nowadays. Companies like Google use all the data they can find about you to target ads and articles to you they think you might like.

    While this may seem good, this creates what is referred to as a “filter bubble” meaning that what you search online may give you more results of what you want to see and what is related to you. This may be good sometimes, but also often stops you from seeing things that you disagree with which is important when trying to find information and educate yourself online.

    Apple’s App Tracking Transparency feature attempts to put an end to this by allowing you to choose which apps and websites can see your personalized data which would allow them to show you ads and search results relevant to you. I think this feature is a good start to ending filter bubbles and of targeted ads.

    Source:
    https://www.irishtimes.com/business/media-and-marketing/ask-app-not-to-track-thanks-i-ll-do-just-that-1.4630722

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