The Impact of Apple’s iOS 14 on Digital Marketing

iOS 14 is one of Apple’s biggest iOS updates to date. It has a bucket load of new, improved functional features and a handful of privacy & security ones for customers. Unfortunately, Apple is in sensational headlines for a broad impact across the digital marketing ecosystem.

Have a look:

The Basics: iOS14 Update

What is IDFA?

IDFA is Apple’s “Identifier for Advertisers.” It is a persistent ID assigned to Apple devices such as iPads, iPhones, and Apple TVs. Advertisers & app developers use the IDFA to identify iPadOS, iOS, & tvOS users across apps to deliver personalized & targeting advertising.

The IDFA also allows these platforms to run frequency capping, attribute impressions, measure campaign performance, and click to app installs. It is just like Android Advertising Identifier (AAID) and also known as a Mobile Advertising Identifier (MAID). The IDFA is mostly used in tandem with cookies (that exist in web browsers) to create a rich identity graph for ad targeting.

The Actual Change in iOS 14 Update

In iOS 14, Apple has changed the way app developers can access the IDFA. Before the update, the majority of users were using the IDFAs; with iOS 14, we expect a drop. Very few users will opt-in. Platforms and advertisers will have access to only a fraction of a % of the IDFAs. (that were available previously)

The Impact: iOS 14 Update Effect on Digital Marketing

When asked about the potential impact of iOS14, Apple shared very little information mentioning about user experience. But, two major areas will see an immediate change.

App Install Tracking & Attribution

iOS 14 has SKAd Network. It will not allow you to share any device-level or user-level data with an advertiser. Apple will control attribution passed back to Registered Ad Networks. SKAd Network will:

· Permit only click-based attribute;

· Not provide date stamp parameter;

· Limit Campaign IDs to 100 per ad network;

· Offer conversions in batches with a latency of 24–48 hours.

Other limitations of SKAd Network:

There is a dire need to explore and determine how it will affect app developers and what possible solutions to the challenges are.

The only thing that is clear till now is — Advertising industry will see a dramatic impact.

Advertising: Personalization, Targeting, Frequency Capping

Currently, it’s tough to predict how reliable advertising platform identity graphs are on IDFAs. If we trust at the Facebook perspective — they will see Audience Network revenue cut in half. Then, iOS14 will be going to have a dramatic impact on advertising on the open web.

If we move ahead with the Facebook conversation that iOS & Android users are 50%-50%. And, there will be a direct loss of the entire iOS audience network. Facebook will not be able to ask users to provide IDFA at all. Even if a user wants to opt-in, they won’t be able to.

However, as expected Facebook or any of the walled garden advertising solutions (YouTube, Google Search) won’t face any significant effect. Why? Because their in-platform user ID graphs will provide them a more strong & resilient audience targeting solutions.

Apps & programmatic placements across the open web will see a real impact. It’s not like advertising will end. There will be a drop in targeting power & control, which will eventually create inefficiencies & poor ad personalization. It is still unidentified how publishers will combat. It might be possible they will add ad units to the detriment of advertisers & users to recover revenue streams.

To know more about the iOS 14 Update Recommendations. Click here