You would have noticed that 2021 is already shaping up to be a watershed moment for online privacy. Google has been moving away from using third-party data, while Apple’s iOS 14.5 update earlier this year limited the influence of people’s apps on their smartphones. As a result, one of their main competitors, Facebook, has had its capacity to target apple users severely limited, which has repercussions for any PPC plan.
Customers are increasingly concerned about privacy, and digital companies are defining their positions on the topic. Apple has clearly been bullish; in addition to the new features, the company has launched a #ApplePrivacy campaign, which has included TV ads in a not-so-subtle dig at their competitors (see the commercial above), as well as a film explaining the detrimental effects of monitoring and targeting.
What effect has it had so far?
It can’t be overstated how many people own Apple gadgets, with Apple stating that about 2 billion of them are in use worldwide as of January. While an iPhone user may be able to connect digitally through non-Apple devices such as a non-Apple desktop, brand loyalty means that a large number of consumers will refuse to utilise the internet on anything other than an Apple device.
While Apple’s marketing focused on providing people with options, its objective was clear. The upgrade, as well as the campaign that accompanied it, were intended to limit the capacity of apps to track and profit from their users. Instead of opting out, users must now expressly consent to being tracked. As a result, adoption has been slow, with estimates ranging from 10 to 20 percent of consumers allowing apps to track their whereabouts.
This is a significant decrease, implying that the strength of Facebook’s third-party data has dwindled. The majority of paid media campaigns have relied on ads served through the Facebook network in conjunction with Google, resulting in massive consequences for many firms.
There have been some substantial changes in the way Facebook advertisements work with the release of iOS 14.5. The following are some of the consequences:
Conversions from users who have opted out are no longer trackable.
These users’ reporting is likewise delayed, with what was formerly real-time data now taking up to three days.
The conversion timeframe for iOS 14.5 users has been reduced from 28 days to seven days.
What else do you need to know about what this means for your PPC strategy?
Make an appointment for an exploration call right now.
So, what’s next?
While the effects of iOS 14.5 are still being felt, there’s more change on the way: iOS 15 will be released this Autumn. Apple’s privacy battle will surely continue, which might entail new restrictions, such as the implementation of a ‘Mail Privacy Protection’ function. Marketers will be unable to determine whether or not an email has been opened as a result of this.
The possibility of even more severe transformation has also been floated in the rumour mill. One recurring piece of tech-related rumour has recently gained new traction, with reports that Apple is planning to launch a social network. Their first foray into that arena with Ping in 2010 only lasted two years, but that’s no assurance they won’t return. Marketers would be quite interested in such a move, especially if Apple became a major player in the advertising arena.
What is the best way to respond?
There are ways around it, especially because, despite the fact that Apple has a large global user base, Android has a larger market share. One logical move would be to remove iOS 14.5 users from any Facebook ad activity, allowing you to avoid targeting people you can’t track. We’re already changing our ad activity in various ways, and if you’d want to learn more about how we could apply these adjustments to your PPC strategy as a whole, schedule a call now.
If you’re significantly reliant on Facebook advertising, there are a number of other networks you may start looking at. Changes will still effect channels like Pinterest, Bing, Spotify, Hulu, and TikTok, but they may be able to offer you alternatives that increase your returns. It may also be time to look beyond advertising and into Affiliate Marketing partnership platforms.
There’s also first-party data to consider. First-party data has always been of greater quality than third-party and second-party data, albeit more expensive and difficult to obtain at times. Now since we’re on our way to a world without cookies, it’s much more valuable. The ability to build stronger relationships with your audience by generating more substantial leads boosts the value of alternative and complementary channels like SEO and Email Marketing. Again, we’re always available to talk about any new developments or modifications in your plans.
Finally, it’s important to understand that change is nothing new in the digital world. The intrinsic beauty of digital is that it is always evolving, quickly and decisively, and equally impossible to forecast. In the social sphere, Apple’s Ping disaster was mirrored by Google’s clumsy Google+, while the unexpected emergence of TikTok and Snapchat has demonstrated how dynamic and creative concepts are quickly seized onto by users eager for something new.
Targeting based on data has also proven groundbreaking, allowing firms to reach a larger number of customers while simultaneously providing a customised, personalised experience for the consumer. Consumer data has enabled marketers to improve the user experience and connect consumers to wonderful products and services that impact their lives, whether it’s discovering new music based on your preferences through Spotify or finding fantastic food ideas via Pinterest.
Trends Amongst Users
The influence of Apple’s iOS 14 update on how advertisers reach their customers is one of the most significant repercussions. Here are a few of the most important trends we’ve noticed:
Retargeting: Despite an increase in LCTRs (link click-through rates), when retargeting people who are engaged in content, the overall audience size has shrunk.
Cost: CRM and 1st-party data are valuable audiences, but they come at a significant price.
Customers with a high perceived value: Lookalike audiences may enhance your reach, but they also increase your cost per reach.
1st-Party Data as an Audience Solution
To the dismay of advertisers, the cookie will continue to shatter, making first-party data a valuable asset for businesses. First-party data allows marketers to have a deeper understanding of their target audiences’ preferences, which may be used for personalisation, relationship development, and more effective direct response marketing.
Developing your own first-party data asset might be difficult, especially if you don’t have direct client ties. Fluent, our friends, can assist you! They can use their excellent survey capabilities to assist advertisers in cultivating first-party, permission-based datasets with bespoke qualities that can be targeted across all key marketing channels.
Additional Hints and Tips:
Conversion Window: Aim for a shorter conversion window with your Facebook promotion, such as one day vs. seven days. This implies that purchases made within one day of clicking your ad, rather than seven days later, will be credited.
Optimize for Value vs. Conversion Optimizations: When you optimise for Value vs. Conversion Optimizations on Facebook, the algorithm concentrates on identifying people who are more likely to spend more, ensuring that your campaign’s ROAS is maximised.
User Interaction: Try Facebook’s Checkout experience to create a flawless checkout experience for your customers with the fewest steps possible.
Diversification of platforms – Using a cross-platform strategy, you can reach a larger audience.
There’s no denying that Apple’s iOS 14.5 upgrade has altered the way businesses market themselves. It has prompted us to improve the way we target customers, create leads, and track conversions as advertising. Testing and reporting are more crucial than ever, and finding the proper agency to work with is critical to overcoming the obstacles.
We’re looking forward to seeing how these advancements will continue to improve the user experience.