APPLE’S ios 14.5 update

WHAT’S HAPPENING

Apple is expected to give iPhone users more privacy rights by allowing them the option to opt in or out of being tracked by apps and websites. The way users are tracked is through IDFAs (Identifier for Advertisers) which give marketers the ability to serve more personalized ads based on access to the user’s non-personally identifiable data.

With the upcoming update, the targeting tools marketers once had to deliver more effective advertising--and measure it--will go away. For users, they will now have more control over their data and privacy.

WHEN WILL THIS TAKE PLACE?

The opt-out option is expected to take place during the upcoming iOS 14.5 update, but this is still TBD. Apple has given a Spring 2021 time frame.

WHAT IS THE GENERAL IMPACT?

Experts interviewed by eMarketer estimate 20-30% of iOS users will opt-in to allowing tracking, meaning a whopping 70% of users will opt out, drastically decreasing the available data advertisers were once used to. This is just an estimate and it remains to be seen how big of an impact this change will have on the industry.

To put this in a different perspective, according to Statista.com, over 80% of Facebook users access the platform via their mobile device. And while the Android operating system has a larger market share than Apple’s iOS globally, iPhone users make up over 50% of the total market in the US. The key takeaway? Regardless of the final percentage of users who decide to opt out of tracking, it will have a big impact on advertisers who rely on major platforms like Facebook, Instagram, Twitter, etc. as part of their overall marketing mix.

WHAT DOES THIS MEAN FOR ADVERTISERS

Brands will soon have a harder time reaching iOS audiences that are most likely to be interested in their product/service. Advertisers that used to leverage user data to improve marketing, deliver more personalized advertisements, and ultimately drive sales will have to resort to other methods to find the right audience. Therefore, a decrease in performance metrics--especially sales--is expected as a result of this rollout. To mitigate this loss, a lot more guesswork will be needed to optimize ad campaigns. The Facebook pixel, which is used by many to fine-tune advertising on the social platform will supply less reliable iPhone user data if any at all.

WHAT DOES THIS MEAN FOR iPhone USERS?

This is a big win for iPhone users as it gives them more power and control over their own data. But the trade-off is a potentially worse online experience than before.

Users can expect to see more general, less targeted ads that don’t fit their interests or needs. Even worse, users can expect to see advertisements that are completely irrelevant to them. Examples of this could be self-identifying females getting ads primarily directed at male audiences for products like beard growth supplements. Or self-identifying males getting ads primarily directed to female audiences for products like IUDs or Tampons.

This poses a philosophical question about user data and how it can deliver a better online experience without crossing the ethical boundaries of privacy.

OUR RECOMMENDATION FOR ADVERTISERS

First, don’t go removing the Facebook Pixel from your website. It will still be an effective means for gathering information for those that use other operating systems like Android or for those that actually give permission to have apps track data on their phone.

Also, Facebook recommends verifying your domain to ensure conversion events are able to be configured correctly. In a blog post, Facebook included other recommended steps to take in regard to how the new iOS update may affect your marketing efforts. Keep in mind auction bidding will now be the only available option for ads on devices using iOS14. Because of this, frequency and reach bidding will no longer be available.

For advertising outside of Facebook/IG, we recommend looking into your UTM setup and potentially restructuring it, and further dividing your campaigns to understand specifically which ad campaigns are performing across the various mobile app platforms you advertise on. This will allow you to optimize your advertising and hopefully mitigate the potential loss in ROI.

Time will tell just how impactful this change is for businesses of all sizes. But for now, businesses should begin to prepare for these changes as best they can.

OUR STANCE

We strongly believe in user privacy rights and support Apple's decision. While we understand this will pose a challenge to our industry, we believe online users have a right to control their online data and how it's used.

Still curious about the update and want to chat in person? Get in touch!

Ascenditure is a digital marketing firm focused on supporting emerging startups and small businesses. We’d love to hear from you.

Email: info@ascenditure.co

Phone: 775-737-1988

Website: www.Ascenditure.co