How Major Advertisers Are Responding to Apple’s Privacy Changes
Recently, Apple has progressively updated its privacy and tracking policies. With these updates come additional hardships for platforms such as Facebook, Google, and Microsoft when it comes to advertisement tracking.
One notable change to Apple’s user privacy and tracking came with the iOS 14.5 update which brought App Tracking Transparency (ATT) along with it. This new feature requires companies to ask your permission before they can track your activity across other websites.
Apple’s privacy changes are impacting the way platforms can target their ads. Now with iOS 15 bringing more protection to users’ privacy, Google and Facebook are altering the way they deliver and track advertisements.
Mark Zuckerberg and Facebook have been quite vocal regarding the effect Apple’s privacy and tracking changes have had on the way they conduct business. In September, Facebook provided a rare update in the form of a blog post which explained that the impact on advertising from Apple’s update has been greater than expected.
Additionally, in an earnings call in October, Mark Zuckerberg made it known that Apple’s changes were having a negative influence on Facebook. “As expected, we did experience revenue headwinds this quarter, including from Apple's changes that are not only negatively affecting our business, but millions of small businesses in what is already a difficult time for them in the economy,” Zuckerberg said. Apple’s privacy changes have also affected the reporting of results of advertisements. In September, Facebook estimated that conversions were underreported by roughly 15% .
Now, Facebook is looking for new ways to combat the challenges that came with iOS 14.5. In an announcement on its website following the release of iOS 14, Facebook detailed the new ad measurement protocols they implemented. “ Following the release of iOS 14.5, Facebook will implement new advertiser experiences and measurement protocols, including Apple’s SKAdNetwork API and Facebook’s Aggregated Event Measurement. These protocols restrict, aggregate, and delay reporting, while continuing to enable the measurement of campaign results, with limitations,” the announcement said.
A more unorthodox way in which Facebook is attempting to aid advertisers is by creating their own e-commerce marketplace. It will allow for direct purchasing through Facebook which diminishes the need for tracking across other sites, however, there is no date on when this feature will be released.
Facebook also allows advertisers to choose the messaging platforms in which customers can reach them. Facebook will showcase which app (Instagram, Messenger, or Whatsapp) to message the company in the ad based on where the conversion is most likely to happen.
Finally, adjustments have been made to the attribution standards. Advertisers are advised to use its Conversions API, aside developer toolkit for user data and measurement that allows advertisers to send web events from their servers directly to Facebook. Additionally, Facebook is advocating for marketers to use geo-testing as part of their attribution standard.
While Facebook has many hurdles when it comes to dealing with Apple’s privacy changes, these recent adjustments made by the company will help advertisers manage the difficulties that come with the privacy policies. Facebook has assured it will continue to work towards lessening the effect of the changes on advertising.
The changes under Apple’s new iOS updates are having an impact on the success of ads placed on Google. In a statement made at the beginning of 2021, Google said, “Apple’s ATT changes will reduce visibility into key metrics that show how ads drive conversions (like app installs and sales) and will affect how advertisers value and bid on ad impressions. As such, app publishers may see a significant impact to Google’s ad revenue on iOS after Apple’s ATT policies take effect.”
The statement also detailed various changes that Google has made to its advertisement tracking protocols. “We will no longer use information (such as IDFA) that falls under ATT for the handful of our iOS apps that currently use it for advertising purposes. As such, we will not show the ATT prompt on those apps, in line with Apple’s guidance,” the statement said.
Not showing the App Tracking Transparency prompt on apps developed by Google will significantly decrease the number of users that opt-in to ATT, allowing for ads to be tracked easier on Google. Google has asked app advertisers to update to the latest version of Google Analytics for Firebase to enable SkAdNetwork support as well.
According to Google, “Google Analytics for Firebase provides free, unlimited reporting on up to 500 distinct events. The SDK automatically captures certain key events and user properties, and you can define your own custom events to measure the things that uniquely matter to your business.”
Failing to update to the latest version of Google Analytics for Firebase means you will be missing out on benefits such as automatically measuring key interactions, such as first opens and in-app purchases, for consented users. In addition, Google Analytics for Firebase ensures your campaigns will be compatible with upcoming privacy-safe measurement innovations from Google.
Microsoft
Microsoft hasn’t had as difficult of a time adapting to iOS 14.5 as they try to distance themselves from Apple. Although, as of November 2nd, Microsoft is offering a system for App Install Ads which provides direct links to your app with the click of a button. “App Install Ads automatically detect the customer's mobile device and operating system, sending them to the corresponding Apple App Store or Google Play. You can also track conversions with the same conversion tracking partners as App Extensions,” Microsoft said regarding the system.
Takeaway
Apple’s changes to their user privacy and tracking policies are doing exactly what they are supposed to do. User data is becoming increasingly difficult to obtain an ad platforms are now testing various strategies and methods to help offset the impact of the iOS update. We are bound to see varying measures amongst the platforms.
