Reshaping the App Economy: iOS 14 Privacy Release (Part I)

SmartAdd > Marketing > Reshaping the App Economy: iOS 14 Privacy Release (Part I)

Expecting the announced release of iOS 14 anti-tracking features? “A tectonic shift in the industry” and “a very apocalyptic scenario” are just some of the expert opinions as presented by eMarketer in their latest report on App Monetization Trends 2020. Data agency owner and book author Lior Barak  goes even further stating “this is the end of the internet as we know it”. 

Part I of our publication summarizes what the iOS 14 release practically means for marketers giving you a hint on the related actions you can take. Let’s dive in:

  • Tracking across apps will be made much harder: That’s what iOS 14 will essentially do. Upon opening an app, iPhone owners will need to opt into allowing its use of Apple’s Identifier for Advertisers (IDFA). Without IDFA, advertisers will have less information with which to target their ads, and they will have less visibility into the activity that results from advertising.
  • To opt in or not to opt in: iOS 14 will eventually force all users to make a choice on whether to limit ad tracking or allow it. It’s unclear however how many people will opt into tracking. Industry estimates are that 50% to 95% of users will choose the Limit Ad Tracking (LAT) option, with most estimates in the 85% to 90% range.
  • User experience of ads becomes crucial. Think value-driven advertisement: in order to get people to opt into IDFA, publishers will have to make a clear case as to why consumers should allow ad tracking. More importantly, they need to make ads that don’t detract from the user experience providing something that users really like or need. 
  • First-party data will become even more important: Tracking users should be an internal process and not an external one. The power of first-party data will benefit, among others, the largest publishers and players. These are e.g. Telecom Operators, the large social media companies, Google, which have ample first-party data and, following user consent, can personalize to a high degree just with information gathered on their owned and linked sites.
  • Adopting different strategies for different accounts: According to Lior Barak, we might actually need an account for iOS14 users and other iOS usersIt might prove worthwhile to learn some interesting strategies for converting users, even those who choose not to share their device ID with you.

It seems that in the new reality, advertisers and publishers will have one chance to convince users to allow tracking of their device ID. Therefore, it would be good to be aware of the exact problems to tackle. Stay tuned for Part II of our publication on the subject and keep following our Marketing Bites.

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