Apple’s iOS 14.5 update and the impact on digital marketing and e-commerce

Digital marketing and e-commerce faced lots of changes in the way apps ask for and gather user data since Apple’s iOs 14.5 was released. As a result, e-commerce advertisers and digital marketers need to take a lot more into consideration since the launch of Apple’s iOS 14.5 update.

The update now incorporates Air Tags support, App Tracking Transparency to name but two additions with privacy, and transparency being high on the list.

Apple’s iOS Privacy Update

Digital marketers and e-commerce advertisers must follow the new privacy regulations. and every advertiser must comply with the new regulations with no exceptions permitted. All apps that gather user data and share it with third parties must work within the App Tracking Transparency (ATT) framework.

Additionally, there’s the Private Click Calculation (PCM) which is a protocol that provides users with resources so they adhere to App Tracking Transparency. When a user opts out of the tracking option, it means:

  • Websites and apps will no longer have access to their Identifier for Advertisers (IDFA)
  • Clicked ad history will no longer last 28 days and will be reduced to just 7 days

When the user “opts in” to tracking, they don’t experience any significant changes to data collection. Furthermore, users can continue to work with app developers and e-commerce brands.

The Three Biggest Updates

The 3 biggest updates to Apple’s iOS 14.5 are as follows.

Identifier for Advertisers (IDFA)

Updates to Identifier for Advertisers (IDFA) – this is a unique Apple ID that’s assigned to all existing divides in a user’s applications. It is often referred to as Google Play Services ID or GPS ADID on Android. IDFA’s are much like cookies-to-browsers in that they track, target, and personalise all in-app advertising.

With the new update, Apple requires that users give iOS apps consent when they collect and share data. Any apps that don’t comply with the ATT Prompt will automatically be removed. The result is that tracking options and personalisation is restricted for the user.

Software Development Kit Network

 SDAd is a set of tools that manages how Apple apps get developed, run, handled and used in advertising. The updates to privacy policies change all of this. All apps that are used in ads must go through the SKAd network.

The SKAd network includes detailed info like click-through attribution for:

  • Publisher ID
  • Campaign ID
  • Conversion Value

The advertiser sets the above. The SKAd network provides click-thru for email, browser, and non-in-app advertising.

This means that sites like Facebook no longer provide the same amount of insight into app installs and uses as they did prior to Apple’s iOS 14.5 update.

App Tracking Transparency (ATT)

ATT is the new prompt that users see when using Apple apps requires them to give their permission for apps to collect/share their data. As previously mentioned, when the prompt is ignored, Apple blocks the apps. The result is limited tracking is now the new normal. In short, advertisers collect less data, and users get less in the way of personalisation options.

Ecommerce brands, developers and digital marketers now have to choose whether the data they collect is worth actually collecting, or whether they should find other ways of tracking via email or browsers.

How Does This Affect Advertisers?

Campaigns that run on iOS whether via apps or the web often report fluctuations in performance. Brands have had to adjust targets, budgets, and/or bids since Apple’s iOS update. Moreover, they have to monitor more closely their campaign performances as well as delivery in order to achieve any of their set goals.

A way of maintaining performance for app-based campaigns is to consolidate no more than 8 app install campaigns for every app. Brands that run app-based campaigns should also migrate app campaigns to tCPA rather than tROAS.

Who is Impacted by the iOS 14.5 Update?

Apple’s update will affect the following:

  • App developers
  • Digital marketers
  • Small online businesses

Furthermore, businesses that rely on data collection, paid online advertising, or retargeting must now adapt to the privacy regulations set out in Apple’s iOS 14.5 update.

In Conclusion

Digital marketers and e-commerce brands have had to evolve to effectively market their brands while at the same time respecting a user’s privacy demands. In short, e-commerce marketing now favours the end-user in a positive way.

Online advertisers know that things have changed and as such have realised they must strategise differently. When it comes to e-commerce and its reliance on social media platform ads, only time will tell if it remains an effective ad strategy.

If you’re struggling to get a decent return on your ad spend, or would like some help with your digital marketing, get it touch. We’re good at listening and finding solutions to problems however large or small.

Call the WiserWeb team on 01953 852939 or send us a message via our contact page, and we’ll be right back in touch.

Posted in Content Marketing, e-commerce, Marketing, SEO