Update: 25 March, 2021 It’s HERE!
Background on the Apple iOS 14.5 Update for Privacy
Apple first announced the iOS 14.5 update at their Worldwide Developers Conference (WWDC). This year, the conference took place virtually (like most events in 2020).
The update included two specific changes to the privacy policy:
AppTrackingTransparency (ATT): This development is a framework requiring users to consent before apps and in-app advertisers can use their customer data.
SKAdNetwork (SKA): This removes user-level data as well as more granular data, both of which advertisers of all kinds (including small businesses) depend on.
To dig into the update a bit more:
ATT will use an identifier for advertisers (IDFA) to notify mobile users on iPhones that they can select one of two options. The first option is sharing their phone activity and data with the app. The other is to opt out of sharing this information. It’s kind of like an “Accept Cookies” button, but for apps. These apps can be as big as Facebook or as small as a niche software app.
How the Update Could Harm Small Businesses
According to one study, 44% of small businesses are using personalized ads to keep them afloat during the COVID-19 pandemic.
This is important considering the rapid rate at which SMBs are closing as a result of depressed economic conditions.
Meanwhile, those businesses that are making the cut are increasing their personalized ads.
With all the buzz about consumer data, it makes sense that individuals would opt-out of sharing their information with an app if given the choice right then and there. (Plus, Facebook refers to the prompt as “discouraging” and says it will “prohibit collecting and sharing information that’s essential for personalized advertising.”)
Since small businesses are already struggling right now, increasing the number of barriers between business and buyers could potentially make it more difficult to operate as a small business.
What Does This Mean for Advertising
The expectation is that some, if not most, people will choose to opt-out of apps sharing their data. That means they will be getting much less relevant ad recommendations that could lead to overall decrease in user experience. The ads will still be there, they could just totally not pertain to the user’s interests.
Simply put, it could be harder for advertisers to reach their target audience like they do. That means online advertising, at least to iOS devices, could become significantly less effective.
Facebook is by far the most effective and affordable way for small businesses to advertise and generate awareness about their products. And Facebook argues that the change is going to hurt small businesses using its advertising platform.
What you Can do
The best thing you can do right now, according to Facebook, is verify your domain. This is especially critical for businesses with pixels used by multiple Business Managers or personal ad accounts. Domain verification will ensure no immediate or future disruption in the ability to configure conversion events.
Final Thoughts
This change has probably made your marketing plan a lot more complicated. These are admittedly massive changes, but the best thing you can do is prepare to be flexible. Things are changing for everyone. With that being said, here are some immediate thoughts and questions.
For starters, how can you really deduce if a campaign was effective or not? This is going to be a million-dollar question for the near future.
At the end of the day, you’ll have to get creative. And we are guessing that organic advertising campaigns may suddenly become more popular.
Facebook may be right—this may impact small business most, and it will impact the least savvy the most. Don’t panic, but be ready to change your approach.
Also Read, GOOGLE’S DECEMBER 2020 CORE UPDATE – WHAT YOU NEED TO KNOW
Source: https://about.fb.com/wp-content/uploads/2020/10/Deloitte-Digital-Tools-in-Crisis-and-Recovery-SMB-Report-Oct-2020.pdf
More commentaries over the net:
SlideBean: “These two companies have been holding grudges for years, and now Apple is hitting Facebook where it hurts. Let’s talk about what these tech giants are fighting about, look out for any double standards, and what could be some of the implications for us, the commoners.
“0:00 FB vs. Apple – Intro 1:43 FB vs. Apple – All about privacy 3:55 FB vs. Apple – The secret sauce of targeting ads 5:52 FB vs. Apple – Living at the eye of the storm”
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