Developers on Collaboration – Tighter Consumer Privacy Regulations

Apple announced sweeping new privacy changes at the end of last year, which include making app developers ask for permission before tracking user data and only providing limited reporting to advertisers on this already small dataset.

Like many other organizations, Apple was forced to tighten its privacy practices as domestic and international data protection regulations ramped up over the last several years. American companies doing business in the EU were primed early after scrambling to comply with the General Data Protection Regulation (GDPR), while many others have since had to implement new controls under the California Consumer Privacy Act (CCPA). In 2023, the California Privacy Rights Act (CPRA) will add more bite to the CCPA and specifically regulate behavioral and targeted advertising that uses personal information. 

This crackdown on personal information has potentially disastrous consequences for game developers, negatively affecting the way they can raise revenue and gain users through targeted ads. Apple’s users are especially lucrative for gaming companies, with the app store generating $11.6 billion in user revenue in the second quarter of 2020, compared to only $7.7 billion spent by Google Play users in the same time. 

Small developers will be forced to move away from traditional ads.

As developers grapple with how to prepare for the coming impact, they have no one-size-fits-all solution to lean on. Businesses that rely on app store revenue must evaluate current advertising plans against other user generation strategies and identify potential new streams of income. 

Where things get out of hand is when large third-party ad tracking companies that have hundreds of advertisers can aggregate and develop sophisticated user profiles.

Developers’ Move

While it’s great to see a healthy financial landscape for the app developer and games industries, this increase in consolidation may also contribute to even more disparity between large and indie developers. Despite these sweeping changes, most developers do care about upholding consumer privacy and aim to balance what is best for consumers with the health of their businesses. Further, when done right — with built-in privacy controls — targeted advertising can actually improve the end-user experience, delivering relevant content instead of random ads.

Direct Publication Source: https://www.forbes.com/sites/forbestechcouncil/2021/05/12/as-consumer-privacy-restrictions-tighten-developers-call-for-collaboration/?sh=5a0db76a6d79