iOS Update 14.5 and How It Affects Ads On Mobile

iOS Update 14 and How It Affects Ads On Mobile

Apple’s newest update has taken online advertising by storm. With this newest update, iPhone users have more privacy now than ever before. It’s official. It’s happening. And it will affect how we use online ads. Apple’s three new app policies are expected to take full effect soon. Well, nothing to be surprised about here. The digital ads ecosystem is very dynamic and keeps changing. Whether it’s new government regulations or tech company policies, changes have occurred in the past, and will most likely happen again in the future. The update gives users the option to block the IDFA (Identifier for Advertisers), which means that iOS will cloak their personal info, but still provide in-app data.

Why is Apple making this privacy change? Apple’s position is that users deserve an opportunity to choose whether or not their data is collected. In response to the backlash from advertisers and specifically Facebook, Apple released this statement:

“We believe that this is a simple matter of standing up for our users. Users should know when their data is being collected and shared across other apps and websites — and they should have the choice to allow that or not. App Tracking Transparency in iOS 14 does not require Facebook to change its approach to tracking users and creating targeted advertising, it simply requires they give users a choice.”

Let’s discuss the current changes that are occurring due to the iOS 14.5 update Apple has curated. This update provides users with an opt-in prompt on each app which will allow them to choose whether they consent to third-party sites like Facebook or Instagram to track their user data. This is huge news. Most of the tracking done for ads is on these apps. This is exactly why it will affect Google Ads and tracking.

Google Ads

Google ads will become a less specific way of targeting and advertising because of Apple’s newest update and the ability it gives its users to be able to opt-out of app tracking. If a large number of users opt-out, retargeting audiences will shrink and prospect targeting will become less granular. You might see fluctuations in delivery and performance for ad campaigns that run on iOS. This will not cause your ads to be completely useless, just less targeted. The more users that opt-out, the less specific your generated audience will become.

Your ads will still show up however, your targeting capabilities may be limited. Users are now prompted to allow or decline tracking permission upon opening an app. Users who allow tracking will continue to receive targeted ads based on their activity. Those who choose not to participate will still receive ads, but those ads will not be tailored to the user and their in-app presence.

Facebook Ads

How will this mess with the impact of your Facebook ads? The new update from Apple and the fact that there are no new updates from Facebook will affect advertising in two known major areas. The first of these being ad retargeting. Ad retargeting means retargeting users who have opted out of IDFA and who regularly visit your site through their Apple iOS device. With the new update, this is now off the table (unless you’re targeting based on their email or phone number).

The second is ad measurement and reporting. The clarity of conversion data may not match what leads actually come through the door with a whole new segment of your audience now operating in the dark. This will also impact Facebook’s ability to limit ad frequency with iOS 14 audiences and deliver your ads to the best audiences. Consequently losing Facebook a lot of money and causing businesses to rely more heavily on getting email addresses and phone numbers.

While tools like Facebook’s algorithms have done the hard work of finding our audiences for us in the past, changes like this make it now more important than ever to own that information for yourself. In-depth research on your audience and their behaviors are one of the most valuable ways to invest your marketing dollars. Do yourself a favor and don’t rely on an algorithm to tell you who your audience is – especially when it can change overnight!

We know this might be confusing and a bit overwhelming so Proximo is here to help. We are more than happy to work with you and your team to capture the attention of your audience to better market your product, culture, and mission. Caring about what you care about is our specialty. Apply to work with us today!