The new iOS update - an advertiser's worst nightmare

Do you advertise on social media - and do you also work with tracking your users? Then you should know about Apple's new iOS 14 update (Tracking Transparency framework), which will be rolled out in early 2021. The update means that users on Apple mobile devices must allow tracking in the future. We've taken a look at the new update, which may give users more control over their data - but it's also making marketers tear their hair out.

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What is the iOS App Tracking Transparency framework?

In June 2020, Apple announced the not-so-literal iOS App Tracking Transparency framework. It's essentially a change in iOS 14 that means all apps on iPhone and iPad, as well as some desktops, will now display a prompt asking users for permission to track them via third-party apps and websites.

It has long been possible for users to opt out of tracking outside of Facebook and limit the amount of data Facebook can use from the user's Facebook profile. But today, they must proactively opt out in settings. In the future, they will only have to reactively respond to an automatic notification.

What is the iOS App Tracking Transparency framework?

The update is a requirement for developers to "disclose" information about the data a given app collects. Of course, this also applies to Facebook. So if you work with Facebook advertising or other forms of social ads, you have every reason to familiarize yourself with the 3 policies that are the basis for the update.

1. Data nutrition label
Requires all apps to add information about their app's data collection via Apple's App Store Connect.

2. ATT (Tracking Transparency Prompt)
All apps must ask users for permission to track them via third-party apps and website.

3. Tracking via App/Browser APIs
Facebook will have to create a new framework that limits and delays event reporting.

What impact will the update have?

The update will have BIG implications for marketers and businesses working with mobile advertising and conversion tracking.

Too many users will likely opt out of tracking. The opportunity for retargeting advertising will therefore be significantly reduced, as the collection of user data will not be possible to the same extent as before.

Finally, you'll probably see a significant decrease in the number of reported conversions.

This gives you a potentially misleading insight into your conversions. This doesn't mean that your ads won't generate conversions, but will probably give you a much lower result because Facebook simply can't track the user's actions.

How does it work in practice?

If a user chooses to give permission for tracking, there will be no change in the collection of data. However, it will require the user to also give permission to other apps in order to collect data across apps.

If a user chooses not to allow tracking, they will access Apple's PCM (private click measurement), which does not support conversion tracking or cross-domain measurement, which will have major consequences for you as an advertiser on Facebook.

Therefore, Facebook has developed their own solution for this - AEM (Aggregated Event Measurement). This solution will support app web tracking. However, it does not currently support cross-domain tracking, but Facebook is working on solving this.

In practice, the update will mean the following changes:

  • With the new changes, you will only be able to have 8 events per domain for campaign optimization.
  • You will probably experience a reduction in retargeting audiences as a large proportion of users will probably opt out of tracking. This also means that there will be overlap in audiences as you can no longer exclude all customers, for example.
  • Due to the reduced data tracking, you will experience a reduction in reported conversions. This doesn't mean that these conversions won't happen - but that you won't see them in Facebook's reporting.
  • Conversion window will change and 28 day click and view and 7 day view attribution will no longer be possible. Breakdowns will also no longer be possible. Therefore, you will no longer be able to see demographic information such as age and gender of your conversions.

The following periods are supported under the new attribution option:

  • 1 day after click
  • 7 days after click (default)
  • 1 day after click or 1 day after view
  • 7 days after click and 1 day after view
  • In addition, there will also be up to 3 days delay on the data.

What can you do now?

With the new update, you will probably need to verify your domain in Facebook. Therefore, it would be a good idea to do it NOW so you are prepared.

In addition, if you have more than 8 events, you should make a plan for prioritizing events.

Finally, you should look at your Facebook strategy and consider whether any changes are needed. In particular, you should focus on getting users to engage with your Facebook or Instagram page. This will ensure an increased retargeting audience as Facebook can retarget those who have interacted with your brand in the app.

In short, the update will have major implications for your conversion tracking and retargeting audiences on social media.

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