• - Examining RBC Capital Markets Speculation - Is Apple's Privacy Policy a Cover for Advertising?

    Examining RBC Capital Markets Speculation - Is Apple's Privacy Policy a Cover for Advertising?
    19 Days, 3 Hours ago

    Tags:  Privacy  -  Security  -  Apple

    In recent years, Apple has made great efforts to satisfy users in terms of data security and privacy, and has brought the iPhone to a position in terms of security, which is why many people prefer the iPhone to Android phones. One of Apple's most notable privacy practices has been to give users the ability to track (or not track) apps, which has been well received. However, Reuters recently published a report quoting RBC Capital Markets, which shows that some analysts are skeptical of this move and believe that Apple is pursuing another goal behind the scenes (such as monetization through advertising). p> Examining RBC Capital Markets Speculation - Is Apple's Privacy Policy a Cover for Advertising?

    Probably a security scandal Do you remember Facebook in 2018? That year, it was revealed that the personal data of more than 87 million Facebook users had been collected without permission by Cambridge Analytica, ostensibly for political propaganda purposes. At the time, Apple CEO Tim Cook, in response to the question of what you would do if you were Facebook CEO Mark Zuckerberg, gave a famous answer that Apple never saw its customers as a product. Does not look.

    In recent years, Apple has always emphasized privacy in its product introductions, as if it were a slogan that must be repeated over and over again to convince customers. Of course, Apple is not just chanting slogans. Recently, with the iOS 14.5 update, Apple announced that a feature called "App Tracking Transparency" or ATT has been added to iOS. With this feature, iPhone users have the option to allow an app to be tracked or to revoke that permission if they wish. If the user agrees to be tracked, he/she will see ads related to the products he/she has searched on his/her iPhone online.

    After announcing this news, Facebook reacted to this issue and He called it an unfair and anti-competitive move, as activating ATT could be seen as a threat to Facebook's advertising revenue. As of last summer, 75% of iPhone users had been denied permission to track their data on various apps and sites, and only 25% agreed. Facebook made more than $ 84 billion in advertising revenue last year, but enabling iOS App Tracking Transparency could overshadow Facebook's ad revenue this year. Examining RBC Capital Markets Speculation - Is Apple's Privacy Policy a Cover for Advertising?

    There is no doubt about it, but according to some experts, it is unlikely that Apple has any intention other than protecting users' privacy by adding ATT to iOS. Brad Erickson, an analyst at RBC Capital Markets, believes that changes to iOS privacy could be a sign that Apple wants to enter the advertising world. According to Erickson, ATT may be a cover to hide Apple's efforts to gain access to the search algorithm (to compete with Google). It should be noted that, according to the Refinitiv Institute, the Ericsson board has received 4 stars due to its high accuracy in estimating the income of Internet companies.

    Surely it has happened to you that after searching for a product online, you have immediately received advertisements related to that product on your phone or computer. This is due to the presence of trackers in applications and sites that follow your interests in cyberspace. For example, as soon as a company like Facebook finds out that you are going to buy a new pair of glasses, you will see ads related to the glasses on your phone or computer. But "app tracking transparency" or ATT can make this process difficult.

    Users' interest in ATT capability and not being tracked in cyberspace means that businesses will gradually lose the signal they used to receive from Apple regarding user activity data. According to Brad Erickson, with this signal disappearing, business owners have no choice but to turn to other options to promote their products and services - such as YouTube and Amazon Connected TV - because online advertising companies can not do without the ability to track iPhone users. Find out what sites or apps users have visited.

    Apple will be able to use the data to sell ads with iPhone activity data, as analysts at Evercore ISI said in August, blocking non-app ads. It takes Americans one step higher in the world of advertising. Of course, Evercore ISI says the main purpose of adding ATT to iOS is to protect users' privacy, not to help make money.

     Examining RBC Capital Markets Speculation - Is Apple's Privacy Policy a Cover for Advertising?

    Ericsson has even raised the possibility of Apple launching a search engine. Of course, the idea of Apple entering the world of search and challenging Google seems a bit far-fetched, because in a situation where even high-budget search engines are not very successful, creating a search engine that can compete with Google is not a reasonable proposition. Not bad to know, according to a recent report, the most searched word in Microsoft Bing search engine was Google! Overall, Apple's past attempts to enter the Google business have not always been successful. People who remember the early days of launching Apple Maps will acknowledge this.

    Let's take a closer look at Apple launching a search engine. On the one hand, Google pays Apple about $ 15 billion a year in "traffic purchasing costs" to put Google as the default search engine in the iPhone browser. With that said, Apple may not want to waste that money. On the other hand, it should not be overlooked that Google earns so much from advertising that it is willing to pay Apple a whopping $ 15 billion a year to maintain part of that revenue. That's enough to tempt Apple to enter the lucrative world of advertising.

    Finally, aside from financial and monetization issues, suppose Apple finally decides to launch a search engine and make money that way. Now, the important point here is that by doing so, Apple has violated its previous principles - not to turn the customer into a product - and will undoubtedly receive a lot of criticism from the community and the media. How Apple responds to these criticisms and prevents its image from being tarnished is an important question that needs to be answered.

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