Apple wants its customers, who pay a premium for its iPhones, to have the right to block tracking entirely. The shifts are complicated by Google’s and Apple’s opposing views on how much ad tracking should be dialed back. Instead, businesses that can no longer track people but still need to advertise are likely to spend more with the largest tech platforms, which still have the most data on consumers.ĭavid Cohen, chief executive of the Interactive Advertising Bureau, a trade group, said the changes would continue to “drive money and attention to Google, Facebook, Twitter.” It may also initially hurt tech giants like Facebook - but not for long. The fallout may hurt brands that relied on targeted ads to get people to buy their goods. “The internet is answering a question that it’s been wrestling with for decades, which is: How is the internet going to pay for itself?” he said. Jeff Green, the chief executive of the Trade Desk, an ad-technology company in Ventura, Calif., that works with major ad agencies, said the behind-the-scenes fight was fundamental to the nature of the web. Google, which depends on digital ads, is trying to have it both ways by reinventing the system so it can continue aiming ads at people without exploiting access to their personal data.
Apple, citing the mantra of privacy, has rolled out tools that block marketers from tracking people. Driven by online privacy fears, Apple and Google have started revamping the rules around online data collection. Now that system, which ballooned into a $350 billion digital ad industry, is being dismantled.
But in exchange, people were tracked from site to site by technologies such as “ cookies,” and their personal data was used to target them with relevant marketing. Those digital ads powered the growth of Facebook, Google and Twitter, which offered their search and social networking services to people without charge. Instead, brands splashed their ads across websites, with their promotions often tailored to people’s specific interests. It eviscerated newspapers and magazines that had relied on selling classified and print ads, and threatened to dethrone television advertising as the prime way for marketers to reach large audiences. More than 20 years ago, the internet drove an upheaval in the advertising industry.
At the center of the tussle is what has been the internet’s lifeblood: advertising.
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