Why do apps on the AppStore want to give you personalized ads?

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When you download a new app/game there is usually an in-game pop up asking you to click allow the targeted advertising, and then the Apple pop up asks if you want to allow tracking or now. Is it only for personalized ads? Why would it matter very much to the specific apps?

In: Technology

It’s required by law for apps to ask use your data to personalize ads to your account. Tracking of your day to day life is abhorrent and you should always say NO. Companies pay your phone provider for this information in the hopes of sending ads to people most likely to buy. Even if it’s an app that doesn’t use ads they gather your data and sell it to others. All the while you just get ads and they get paid.

they get paid when you click an ad…so they want to show you stuff you might actually click.

Targeted advertising usually results in a higher click rate for the ads that the app displays, and thus more income to the developers of said app. Targeted ads use insights about you collected from your information online and your browsing behavior tracked with analytics to display advertisements more personalized to “you”, or rather what the data collected says about you.

Apple recently started cracking down on tracking permissions, forcing that “Allow Tracking” dialog to now appear when the app requests the permission. You now have to give explicit permission to opt-in to tracking. What they do with this information is up to them at that point, however it is mainly used for the aformentioned target ads.

Apple themselves puts it fairly well in this video https://www.youtube.com/watch?v=Ihw_Al4RNno.

Targeted advertisements are more effective, and so pay out more. The specific app would like you to allow targeted advertisement because it can easily be double or triple the revenue for them.

Advertisements as a monetization model is already really fickle in terms of revenue consistency. Getting as much money out of it as possible can be the difference between your company surviving or going under.