With Apple’s release of iOS 14.5 in April 2021, iOS apps are required to request permission to track their users beyond the app in use. This change is anticipated to impact the entire mobile ecosystem and create challenges for personalized advertising and attribution, impacting the $189 billion mobile advertising industry worldwide. Source
What are the statics?
According to Flurry, 12% of global iOS users and 4% of US ones have allowed app tracking. Means 96% of users have opted out of app tracking since iOS 14.5 launched.
Although, this number is not going to stay a constant percentage and will change over time. There is no doubt the majority of iPhone users opt out of app tracking including Facebook. And upraising user data restrictions and GDPR will amplify this problem for ad industry and for businesses using ads as acquisition channel.
What does it mean for Facebook and advertisers?
According to Facebook, it causes Targeting limitations
As more people opt out of tracking on iOS 14 devices, the size of your app connections, app activity Custom Audiences, and website Custom Audiences may decrease.
Alternative Targeting strategies to consider:
Use a broad audience for inclusion
Use targeting expansion
Both broad audience and targeting expansion mean there are more reach and consequently more acquisition cost especially for eCommerce that needs more personalized offers.
According to Facebook blog; “Without personalized ads, Facebook data shows that the average small business advertiser stands to see a cut of over 60% in their sales for every dollar they spend.”
And this is not limited to Facebook and Instagram family. Companies like Snapchat and Twitter, have acknowledged that the change will likely impact their business.
How Contester helps Facebook and advertisers?
Contester visual discovery, is a simple solution that enables extremely fast and efficient navigation on mobile screens. It takes 3 touches (no scrolling) for users to get into a specific landing page between 216 different landing page offers.
For an ecommerce retailer, it means It takes 3 to 5 seconds for users to find a category between hundreds of categories. So, a broader audience doesn’t necessarily mean more bounce rate and acquisition cost. User finds what they need extremely fast. This is what we call intent-based targeting.
With Contester visual discovery, it’s still possible to provide personalized ads to the 96% of iOS users that businesses have no access to their data. Learn more about visual discovery here.
Facebook has mounted a campaign against Apple's new privacy measures, including its in-app messages. COURTESY OF FACEBOOK
Although the new privacy update on iOS 14.5 has affected the ad industry, the main victims are businesses that have no choice rather using available ad channels, even if not as efficient as before. Facebook has doubled down its revenue in 2021 and with its eCommerce features expansion. However, Apple’s movement might have a bigger impact on making users self-conscious about their privacy rights and might trigger more extended restrictions in the future.
You can always sign up for a demo call Here and get additional information about using Contester solutions including Visual discovery. We will be happy to help you to get started in one day.