If Apple doesn’t change course, we’re in for a possibly very humbling year for SMB app publishers and an App Store that advantages the largest publishers with the biggest wallets
What does Apple’s IDFA change really mean for consumers? It will undermine personalization, make it harder for SMBs to compete, and upend free services.
The IDFA change means that iPhone users will be asked whether they want to allow tracking when they open apps. It will deal a blow to digital advertising.
In search of a new identity solution, publishers will prioritize first-party assets, including email, in concert with any Universal ID adoption. This is just one of many changes advertisers will make in the new year to respond to a shifting ecosystem.
The latest in the tug of war between consumer privacy and effective digital advertising pits Apple against Facebook, Google, and others. At stake for ad tech: significant revenue for ad publishers and app developers, effective ad results for advertisers, and more relevant ads for consumers. At stake for users: consumer privacy protection, the use of their behavioral data for marketing, and possibly, the future of “free” software.
Apple’s pending release of iOS 14 is a strong consumer-privacy-first stance and a potential disruption to digital marketing as we know it. But what is the real impact for targeted digital advertising?
As an industry, we must embrace the new rules of iOS14 and create a sustainable future for both app developers and advertisers. I believe we can all agree that user consent is important for any app that monetizes through advertising. Also, there are options to provide user-level attribution and necessary data for performance advertising within Apple’s acceptable framework. I’d encourage all publishers to talk to Apple and seek clarification on process and end-user consent along with the use of IDFVs & SKAdNetwork product road map, etc.
I expect that publishers will aggressively move to optimize their sign-up funnels to maximize consent or live with campaign-only-level metrics and lose end-user targeting. If you’d like to continue to optimize towards ROAS, we encourage you to think of privacy consent as a step in the UA conversion funnel necessary to show targeted ads to consumers.