Alex Gurevich, HonTe’s founder and CIO, says in a personal Twitter account that the changes in iOS 14, which have led to increased consumer privacy, are affecting small and medium-sized businesses.

Gurevich said the cost of attracting customers has doubled. It has become difficult for small companies and online brands to attract customers with financial investments and to develop and remain independent simultaneously.

SMBs account for 44% of GDP, and 64% rely on online targeting. Today, these business areas are experiencing a 50 to 60 per cent drop in revenue. Gurevich cites Meta’s 2020 report on the forced shift of small businesses to subscriptions and other in-app payments. The study also criticizes Apple’s decision to exclude its personal ads’ platform from the policy.

Gurevich argues that Apple’s attempts to satisfy people’s desire for privacy affect small businesses.

The iOS policy update has reduced the percentage of sales for small businesses because they depend on targeted advertising. Such companies do not compete with the big studios, which can attract more users organically

Alex Gurevich, HonTe’s founder and CIO
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