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The Hidden Price of App Tracking Transparency: Impact on E-Commerce Innovation
Dec 15, 2024·
Maximilian Kaiser,Guy Aridor,Yeon-Koo Che,Brett Hollenbeck,Daniel McCarthy
Marketing4eCommerce explores the unintended economic consequences of Apple’s App Tracking Transparency policy, arguing that what appeared as a privacy victory created significant hidden costs for e-commerce businesses and consumers. The article highlights how ATT dramatically reduced targeted advertising capabilities and increased customer acquisition costs, with research showing a 37% drop in advertising effectiveness for e-commerce companies. The analysis reveals that while ATT was positioned as consumer protection, it ultimately consolidated power among larger tech companies while harming small business innovation.