In the earnings report from Meta this Wednesday, Meta said the privacy feature introduced by Apple last year could cause Meta $10B in lost sales this year. Another important fact is that Facebook is losing users, which shows the attractiveness of this media declines. This news, alongside with the loss from metaverse, dropped Meta's stock price more than 26 percent in Thursday morning.
Apple's new privacy feature hits not only Meta, but almost all the apps. Privacy is always good to us, to protect us, but this time who is going to make up the loss? The price of advertising may increase, then the pressure will go to the brands, the brands have to increase the price for their products or services to keep the margin.
From the other side, it's a test for all tech giants relying on ads to create revenues. Google is less negatively impacted by Apple's new privacy feature (to some extent benefits from this feature, since it suppresses other ads platforms), one reason is Google naturally depend less on the privacy data restricted by Apple this time, and the other is Google is actively facing this challenge - to develop more user analytical tools. Now we see it's not easy for giants to monetize through ads anymore, they need to invest more on advanced ads system. Let's wait and see how they are going to tackle it.
Resources: https://www.emarketer.com/content/meta-s-earnings-miss-demonstrates-vulnerability-of-its-ad-revenue-model-compared-with-google-s
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