AppLovin’s Ad Surge Pressures Google to Reverse Privacy Rules and Woo Publishers

Google ad executives grew alarmed in 2023 as app install ad revenue growth stalled and AppLovin gained ground by bypassing privacy constraints and offering better targeting via IP tracking—something Google had prohibited. Between 2022 and 2024, AppLovin’s ad revenue tripled to $3.2B, driven by acquisitions like MoPub and adoption of in-app bidding, helping it pull share from Google and Unity. In response, Google reversed its IP tracking policy, introduced incentives for publishers, and launched more aggressive ad formats mimicking AppLovin's. While AppLovin has made a push into e-commerce ads, early enthusiasm has faded due to skepticism and short-seller reports. The battle illustrates Google’s growing vulnerability to nimble ad tech rivals amid antitrust scrutiny and changing privacy standards.