Here's Why Alphabet Has Done Relatively Well Amid Apple's Privacy Changes
Last year, Apple (NASDAQ: AAPL) implemented changes to its operating system that made it more challenging for third parties to collect data on users of its electronic devices like iPhones or iPads. Social media companies like Meta Platforms (NASDAQ: META) are suffering. They rely heavily on selling targeted ads, and marketers are unwilling to pay as much without the feature.
Impressively, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has fared reasonably well amid these changes. Let's dive deeper into the impact of these changes on Meta Platforms and why Alphabet is not hurting as badly.
Apple's iOS 14.5 update, released last year, includes an app tracking transparency tool that limits the amount of data app developers can collect. These companies now need to ask users for permission before they can track their activity, an option many choose not to give. Of course, marketers are willing to pay higher prices for precise, targeted advertising. It all but eliminates the instances when advertisements for a steak restaurant in Denver are sent to a vegetarian living in Omaha, Nebraska.
Source Fool.com
