The losses are estimated to reach $9.85 billion, which translates to an average of 12% of third and fourth quarter revenue for top social media companies, according to ad tech company Lotame. It was Facebook who suffered the most total revenue loss, due to its large size.
Hours after that earnings report, alarmed investors sent shares in all online ad-based companies sinking. The selloff wiped out $142 billion from the market values of those companies, though several of their shares have somewhat rebounded soon after.
In light of Apple’s new changes, experts say that social media services like Facebook may need to come up with entirely new business strategies, especially now that advertisers find cheaper yet effective alternatives like TikTok.
Meanwhile, companies like Twitter and Google parent Alphabet were not very much affected by the change because their ads do not depend heavily on tracking mobile activity.
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