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

    In Part I of our publication, we gave you an overview of the coming iOS 14 anti-tracking features and some strategies on withstanding its negative effects. Let’s face it, there are certain issues it will create for advertisers and publishers that we’d better not underestimate. Check them out:

    • Severe impact on monetization: Facebook warned that recent anti-tracking features in iOS 14 could lead to a more than 50% drop in Audience Network revenue for advertisers and the feature will hurt many developers and publishers “at an already difficult time”, including small businesses that depend on ads.
    • Less ad effectiveness and lower CPMs: In a test among a group of app install ads in Audience Network run by Facebook in H1 2020, it found that personalized ranking generated 100% more revenues than non-personalized ranking.  A more general drop in personalized advertising and a combination of an inventory increase with less effectiveness will likely lead to significant drop in CPMs.
    • Apple is ignoring EU’s GDPR: A group of 16 European marketing and digital advertising associations have criticized Apple’s iOS 14 and iPadOS 14 plans for increased privacy, i.e. users will effectively have to be asked for permission twice. This is specifically an issue for European users, as their personal data is protected by the EU’s GDPR rules. 
    • High risk of user refusal: By implementing its iOS 14 plans, Apple is not adhering to established European rules for governing how the ad industry can or cannot track users. The required pop-up and limited ways to customize it is likely to push users to the point of refusal. 
    • Apple’s own tracking solution – questionable:  Apple’s own SKAdNetwork tool will not require user permission. However, it works with anonymous, aggregated data, rather than specific user details. There are numerous limits, including delayed notification of conversions (24 to 48 hours), thresholds for conversions before notifications kick in, and limited campaign parameters, which greatly reduce the granularity of campaign performance. Above all, it sends no personal information.

    While Apple recently pushed the changes to data tracking out to an unspecified date in early 2021, getting equipped with the knowledge and developing a timely strategy will ensure you stay on top of your game. Keep following our Marketing Bites for further insights on the subject.