How Will Apple iOS 14 Change Digital Advertising?

How Will Apple iOS 14 Change Digital Advertising?

Apple’s upcoming iOS 14 privacy update has many advertisers and app developers scrambling.  In summer of 2020, Apple announced the rollout of their new operating system, iOS 14, which included new privacy features. As part of the new operating system, mobile users will be empowered to decide whether or not they want their data tracked as they peruse different apps and the internet. These new changes, scheduled to take place sometime in Spring 2021, will have a noticeable impact on the marketing landscape for platforms such as Facebook, Instagram, Google, and many more.  In preparation for these changes, platforms and advertisers alike have to rethink how they do business, including implementing new strategies and tactics designed to minimize impact.

One major change involves Identifiers for Advertisers (IDFA) – Apple’s mobile ID that allows advertisers to target and track users within apps on iOS devices and shares user information with ad platforms, app developers, and mobile measurement providers. With the release of iOS14, users will be required to opt in in order to be tracked across apps and websites. As fewer users are expected to opt in, advertisers will have much less data to work with, thereby reducing the accuracy of their marketing abilities and the personalization of their ads.

As one of the most prominent social media platforms, Facebook has been challenged with the adoption of the new iOS 14 policy, as Facebook utilizes their user’s web data to monitor off-platform user traffic via Facebook Pixel and use this information to calibrate targeted advertising demographics, build retargeting audiences, and match users with programmed content. It is important to note that while Apple iOS 14 mobile users will be required opt in/opt out of data tracking, Android and other mobile users will continue reporting third-party data to sites, such as Facebook and Google. Nonetheless, Facebook has been forced to pivot by making changes to their advertising platform in order to mitigate the potential changes that can adversely affect ad campaigns.

Facebook has been quite vocal about the coming changes to their platform, and they urge advertisers to understand these updates which will undoubtedly impact their marketing practices. The big changes for Facebook’s advertising model include strict limiting of Facebook Pixel reporting capabilities from several reportable events down to just one, as well as capping the number of supported events for each domain down to only 8 prioritized events. Facebook will also require that advertisers on the platform verify their website domain and will reduce the accuracy and timeliness of conversion reporting as 28-day attribution windows are scaled down to default 7-day windows.

Google will also be adversely impacted by the changes in Apple user privacy settings, however their approach to the reduction of IDFA access seems to flow better among advertisers and developers. According to Adexchanger, although Facebook has indicated that it will stop entirely collecting IDFA information from its Apple users, Google will implement an AppTrackingTransparency (ATT) Framework, which will allow continued tracking information from Apple users who decide to opt in with minor changes to reporting tools such as Google Analytics.

As we progress into the era of enhanced security, user privacy and transparency, first-party data will be especially important. Actively capturing user information (email, phone, address), will be even more valuable, since their utility will likely increase over time as IDFA privacy protocols become stricter in the advertising space. More than ever, it is essential to develop a viable strategy for maximizing advertising spend and optimizing a results-driven multichannel approach. Perhaps the most viable way to stay ahead of the curve is to stay informed of privacy changes and policy updates for platforms that you advertise on and to be proactive instead of reactive.

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Sources:

https://www.wpromote.com/blog/analytics/ios14-digital-marketing

https://www.searchenginejournal.com/facebook-advertisers-brace-for-ios-14-tracking-prompt-fallout/392012/#close

https://www.facebook.com/business/help/331612538028890https://www.adexchanger.com/mobile/googles-quiet-preparations-for-apples-idfa-change-offers-hints-on-the-future-of-its-own-mobile-ad-id/

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