Apple’s introduction of App Tracking Transparency (“ATT”) has drawn substantial commentary. Some see ATT as disruptive and self-serving, while others view it as a privacy-preserving tool that is ushering in a new era of advertising. However, the commentary often betrays a lack of understanding of what ATT is and what it is not and draws speculative conclusions about its impact.
I will first explain the context in which Apple introduced ATT. The $300 billion mobile advertising industry relies on vast amounts of consumer data to serve targeted ads. Companies may target ads based on the content of the webpage or the app in which ads are placed, or target ads based on input such as search terms provided by consumers. They may also target ads based on demographic, psychographic, behavioral, or other personal information about specific consumers. These data come in many forms and are gathered in different ways, but are broadly classified as:
