What Advertisers Should Know About Apple’s New Privacy Update
Every so often, Apple updates the operating system used on mobile devices. Normally, it brings exciting changes like new features for users. However, this new update has received even more attention than those in the past. Just in case you’ve missed all the stories, you’ll learn everything you need to know about this latest privacy update.
What’s in the Update?
Let’s not beat around the bush, you’re probably here to read about App Tracking Transparency. This is a new feature from Apple that, as the name suggests, changes the privacy regulations for all apps in the App Store. Initially, the update was revealed towards the beginning of 2020. However, the release was delayed after developers suggested that they didn’t have enough time to prepare for the overhaul.
Now, in 2021, the privacy update is live, which you may have noticed because apps are now asking permission to track your activity. This is essentially the crux of the update and the reason why many advertisers are starting to worry about their campaigns on platforms like Facebook.
If you have an iOS device, you’ll notice that apps will start asking for your permission to track behavior and activity. The biggest change in iOS 14.5, is that all apps will need to request permission to track activity across other companies. Users then have an opportunity to either allow tracking or reject the request (a problem for advertisers!).
When an app asks for permission of this kind, users will see it in the tracking menu inside the iOS settings. Therefore, even after allowing permission, there’s a risk that users will change their preferences at a later date. Apple makes it easy for users to do so with a toggle not only for individual apps but to quickly turn tracking off for all apps.
What does this mean for all parties? When users turn tracking off, the app won’t have access to activity found in the IDFA identifier. Not only can the app not share the activity with third parties, but it also cannot track users with hashed email addresses and other identifiers.
Read More: GDPR-Like Legislation Headed to the US
Response to iOS 14.5
While most Apple updates pass by with little debate, the same can’t be said for iOS 14.5. Those supporting the App Tracking Transparency update say that more control for consumers is always a positive step. They’ll argue that companies and apps have access to too much activity data and personal information (especially when this is gathered and shared without express permission from the user themselves).
On the other side, others argue that this takes away too many opportunities for advertisers. For example, Facebook has been very vocal (for once) about the fact that targeting will suffer for advertisers using the platform. Of course, this is a feature that has become somewhat of a USP for the company in recent years.
Elsewhere, there’s also an argument that this update takes power away from small businesses. By limiting access to data, small businesses can no longer reach out to niche audiences, at least not in an affordable way.
Most people have said it, but Facebook’s intense approach to the Apple update is out of character, and it shows the concern that the platform has for advertisers. Readers of The Wall Street Journal, The New York Times, and The Washington Post will have seen the numerous Facebook ads. The company said that it was time to stand up to Apple and fight for small businesses. Despite the positive message, many have been skeptical about whether this is Facebook’s biggest concern or whether the company knows that this is a message to which people will respond.
Read More: Why Have My Facebook Ads Geographic, Demographics, and Placements Disappeared?
Ultimately, the full impact is impossible to foresee without knowing the number of people clicking to allow tracking and the number of people clicking to stop tracking. Some early studies suggest that somewhere between 55% and 60% will choose to reject tracking.
Interestingly, Apple has told app developers that they cannot restrict features for those who tap against tracking. Therefore, they can’t punish users for not allowing tracking or only allow certain features to those who have allowed tracking.
Antitrust Complaints
It’s not just Facebook fighting Apple with this latest privacy update, antitrust complaints have arisen both in France and Germany. In the latter complaint, a selection of large tech, media, and advertising companies have come together to oppose the App Tracking Transparency update.
According to the complaint in Germany, consumers will end up paying more for apps and app developers could lose up to 60% of all ad revenue. The complaint doesn’t hold back and even uses the term ‘antitrust abuse’ when describing the behavior of Apple. Instead of small businesses, this complaint has been generated by large brands in Germany including Facebook, Die Welt, Bild, Insider, and others.
After this change, the complaint says that it becomes less viable for developers to offer an ad-based free app. With targeting and ad effectiveness reducing, fewer advertisers have the motivation to continue, and the app doesn’t receive the revenue it needs to survive. Instead, apps will need to charge either for the download or for certain features within the app.
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This is a theory that has been circling around the internet, and it theorizes that Apple is happier with this type of system. At the moment, Apple isn’t making money from Facebook’s ad system nor does it earn properly when apps gain revenue from advertising. However, make advertising less effective and app developers are forced to charge for download or in-app purchases…where Apple earns a percentage of all income.
In truth, this is a battle that everybody saw coming. It’s a battle between privacy and advertising. Consumers want privacy and they want some level of control over their personal information and activity data when browsing the internet. Likewise, advertisers want some level of access to data to ensure that consumers receive ads that resonate and are pertinent to their experience.
We’ve been toeing the line for the longest time, and it seems that the battle will finally explode with neither side wanting to back down. As well as antitrust complaints in France and Germany, similar complaints have arisen in the United States and in various other countries around the world.
iOS 14.5 for Advertisers
As an advertiser, you need to be aware of iOS 14.5 and how it affects your marketing campaigns. As the access to data reduces, you need to take a proactive approach and deal with the potential repercussions as soon as possible. In addition to adjusting campaigns, you should seek the help of third-party platforms. With the right tool, you’ll retain access to geographic, demographic, and gender data even after the Apple update.
Furthermore, you’ll gather insights and automatically apply them to your campaigns so that you’re always optimizing targeting, bidding, creatives, budgeting, and more.
Read More: How the GDPR Contributes to Healthier AI Marketing
Other Features in iOS 14.5
With the App Tracking Transparency feature taking all the headlines, it’s easy to ignore some of the other features available in iOS 14.5. For example, this includes:
Siri Improvements
Finally, the moment that many people have been waiting for because users can now choose the voice of Siri. Apple has committed to inclusion and diversity, and this new change is further proof of this. With customers choosing a voice for Siri, they take advantage of Neural Text to Speech technology to improve their experience with Apple products.
Elsewhere, Siri seems to gain more capabilities with each update and the same is true for iOS 14.5. Now, Siri helps to initiate FaceTime group calls as well as announcing calls through Beats and AirPods.
Watch Unlock
For those with an Apple Watch, you can now use this device to unlock your phone as a replacement for Face ID. Since the global pandemic, the world has been forced to wear face masks, so the ability to unlock using an Apple Watch is a safer and more responsible method (rather than pulling the face mask down and potentially exposing others to the virus). This works so long as you have at least an Apple Watch Series 3 and an iPhone X.
New Emojis
Whenever an Apple update comes, it’s always exciting to look at the new emojis on offer. This time, it’s a series of romantic emojis showing couples kissing with a love heart between them. As an extension of the commitment to inclusion and diversity, users can choose the skin tone of each partner.
Other Improvements
In the relatively large update, users can also communicate a road incident to Siri using Apple Maps. This way, Maps stay updated in real-time and drivers don’t need to take their hands or eyes away from the road. If you’re driving to a friend, you can also send an ETA to their device while on the way.
Smaller improvements can be found with 5G, reminders, accessibility and voice control, Apple Fitness+, AirTag, Apple Podcasts, and Apple News.
