Evaluating The Impact of Privacy Regulation on E-Commerce Firms: Evidence from Apple’s App Tracking Transparency – MSI

Working Paper

Evaluating The Impact of Privacy Regulation on E-Commerce Firms: Evidence from Apple’s App Tracking Transparency

Guy Aridor, Yeon-Koo Che, Brett Hollenbeck, Maximilian Kaiser and Daniel McCarthy

Jun 27, 2024

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Analyzes ad spend and performance data from over 4200 ecommerce firms worldwide on Meta, Google, and TikTok to determine the impact of Apple’s App Tracking Transparency policy on add effectiveness, substitution across platforms and revenue from new and existing customers.

Topics

advertising Competition & Markets Privacy & Regulation

research recap

Is Apple’s Privacy Policy Taking a Bite out of Business?

Restricting access to third-party data may enhance consumer privacy but can hurt start-up and other direct-to-consumer companies that rely on targeted marketing. Implementing Apple’s App Tracking Transparency (ATT) privacy policy greatly reduced response to online ads and resulting revenues, especially for smaller companies, potentially affecting competition and market concentration.

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