PLATFORMS, POWER & ADVERTISING: ANALYSING RELATIONS OF DEPENDENCY IN THE DIGITAL ADVERTISING ECOSYSTEM

Abstract

This paper examines how dominant institutional actors exercise power and control over the digital advertising ecosystem. It pursues this inquiry through a case study on the 2021 introduction of Apple’s App Tracking Transparency (ATT) feature—a privacy setting newly integrated in the operating system of iOS mobile devices. Developing this case study, we ask: How do dominant market actors exercise control over the infrastructural layers of the ‘mobile ad stack’ and how do they gain access to end-user data? These questions are addressed through a mix-methods approach that involves (A) analysis of developer documentation provided by Apple, (B) a review of ongoing litigation, and (C) analysis of financial disclosure forms of two ad-driven platforms Meta and Snapchat. This inquiry shows, first, how and why Facebook and Google, each in their own way, have been highly successful in their ability to aggregate both ad inventory and accurate, real-time user data. Second, it demonstrates how ATT blocked the access of advertising platforms to a key part of this real-time user data, while, simultaneously, enabling Apple to gain control over end-users’ mobile data. Thus, the rollout of ATT and its subsequent shifts in revenue and data demonstrate the relational and constantly evolving nature of institutional power in the mobile advertising ecosystem.