Small businesses face the cost of Apple's privacy updates

Small businesses owners are decreasing their marketing spend due to Apple's privacy changes.

The changes implemented by Apple have made it harder for businesses to target new customers online, leading to billions of dollars in lost revenue for big platforms like Facebook.

Last year, Apple begun making the changes, which involved forcing app developers to get permission to track users and serve them tailored adverts on iPhones and iPads. These changes had a tremendous impact on online marketing.

Facebook, Snapchat, Twitter and YouTube are estimated to lose $18 billion in revenues this year due to Apple's privacy updates.

However, Google Search and Amazon's advertising business have not been affected by Apple's new privacy rules, as they do not rely on third party tracking like the other platforms. Additionally, Apple's very own ads business "Search Ads" has increased its market share and is expanding it's presence.

Shelly Cove's Schroeder cut his online ads budget to a third of what it was, hoping that returning customers will help keep his business open. "I realised I was way too reliant on Facebook." "Any small business, at least the online ones, are at whim of these Big Tech giants. There's just no way around it. So if they do something that screws you, you're screwed."

Article by Financial Times