This happens on every single HN thread on this topic. I'm not a total expert but there is a lot of arm chairing that's wrong.
Tracking is profitable and more so than contextual for a lot of direct response in a lot of industries.
Not in all cases, e.g. usually not for brand advertising. But it works.
For my clients is the direct data I have - and we have extensively tried every single other option. FB is the only platform that delivers strong ROI and we use the targeting iOS blocks. And yes - it's always retorted - I know 100% the donations come from the ads, it's incredibly simple to track even as simple as making a new page or individual product only linked from that ad.
So far this change is definitely effecting our ads and FB seems pretty buggy with the new ads manager changes. But they 'always find a way.' But so far it's not as bad as I originally thought it would be.
Plus you can still upload offline conversion data. most purchases have full contact info. We'll see if Apple comes after that, but they would then have to go after the entire ecosystem including Visa.
FB's stock prices hasn't changed because we haven't seen if this really impacts revenue to FB. We know that banner ads are extremely ineffective. So if FB ads are still more effective than that, they will continue to capture the lion's share of ad revenue.
They have a pretty huge privacy section in android settings where you can see exactly what data they have on you and how to opt out and/or delete existing data.
When you set up android, it ask you if your want in or out. You can even set up a new android device without a Gmail account and disable all Google services including Gmail and search. I don't belive you can do this with iOS.
All those nice settings (for google and everyone else) are only for the minimum they are required by law. That means anything that they can claim to be "anonymized" is fair game and not visible to you in any way.
One thing I really do appreciate about Google products is that I'm able to fully disable personalization. My Youtube homepage is completely depersonalized, because I went through their privacy settings and switched off everything. I can't say whether or not Google is still secretly tracking me, but my biggest concern is actually that algorithmic recommendations put me in a filter bubble. Google lets me turn off the bubble.
Amazon, by contrast, does not let me depersonalize my recommendations. Neither does Netflix. There was a period of several years where I would periodically go through my Amazon history and manually mark everything as a gift. This worked for a time, but abruptly stopped one day. I assume Amazon decided I'd marked too many things as gifts and my selections should be ignored.
Did you receive any ads in spanish or chinese recently? did you see any political ad to a party you vehemently oppose? All that is still decided by your profile and history. Just with hocus pocus anonymization on the front end.
So google is not that different from netflix and amazon. they just give you a blanket.
(Yes, I know there are some hacks to get around that )
That was how it was done for a long time. Advanced tracking was just a way to try and keep increasing revenue.
Whether it worked or not, only the higher ups at these companies can tell... probably.
Personally in the old days of newspaper ad's, I always wondered what the point was of anything smaller than a whole page; what is the point of a 1x1 inch ad in the midst of 200 others. Even today I ignore 99% of what's on the page other than the content.
In fact many people only bought the paper on ad day.
Whole different kettle of fish.
This IMO makes two scenarios likely:
1) The market is currently just dragging along, hoping this will all go away and we're really in a major ad-bubble that's about to pop.
2) Tracking... isn't that profitable after all. All the personalized tracking shit can be replaced with a simple "users who clicked on canon printer also clicked on cheap ink refill kits" type of model that gets the same results or better. Which also puts into question a lot of what FB and Google are actually doing.