Very few people know how apps make money.
Fewer understand that Apple is a piece of shit for pulling the absolutist, crappy move called ATT which crippled the industry.
Here's a simplistic explanation on how millions of app developers monetise in the ~$100B+ app ads market:
Jane opens Candy Crush on her phone. Candy Crush wants serve an ad. Jane's phone sends an ID that's unique to her device (IDFA) to an ad server. Think of an ad server as a traffic policeman who regulates traffic
The ad server sends this to several ad networks like AppLovin or Facebook
An ad network is a collection of advertisers.
This ad network (e.g. Facebook) will match this device ID to their data set. Their data set will tell them that this phone belongs to Jane, she's into fitness and her birthday is coming up. This ad network bids on behalf of MyFitnessPal with a birthday offer to drive installs
The ad server collects bids, and shows the ad of the highest bidder (not as simple, but assume this for now)
Jane sees the MyFitnessPal to level up (rewarded video) clicks on it and installs the app. This is a conversion. MyFitnessPal pays the ad network, the ad network pays the lions share of that to the app developer of Candy Crush
When this device ID is passed, its a safe and relatively anonymous way to target prospective users. MyFitnessPal will have a reasonable CAC, Candy Crush will make money, the ad network will also do so and users can use Candy Crush for free,
When it is not passed, the ad network can't target well. It is effectively blind (as compared to earlier). MyFitnessPal's CAC goes up. CandyCrush doesn't receive as many ads ('no fill') and is not able to monetise. Ad networks are also kind of pointless
The names I used here are for familiarity. The reason why a new app can get $4 CAC is IDFA. The reason why 2 app developers in a flat in a emerging market can get a Nike ad is also because of IDFA
In the garb of privacy, Apple has effectively crippled the ad tech industry. Any app developer who cannot monetise via subscriptions, startups who rely on affordable CACs to drive growth and build good businesses
Why? Privacy? F*ck no. Apple wants to build its own ad network and effectively create a duopoly with Google. Want proof? Check your phone, tap on this
The only way to make money on the internet is to make people pay or serve ads. There's no third way. Unless we want the internet to become Ryan Air, where we pay for everything.
Acquiring users is going to get more expensive, users are going to have shittier experiences and app monetization is going to get harder. Unless, of course, Apple creates its own ad network. Looks like they did! twitter.com/sethmills21/status/1532542043565727744?s=20&t=mtsBdgkaMIrGiXHwXN3x-Q