Apple's new privacy update could have positive implications for marketers

Appleannounced
a new user consent requirement for its widely-used Identifier for
Advertisers (IFDA) tool, which will change how advertisers target
consumers on iOS apps.

The Apple Inc. logo is seen hanging at the entrance to the Apple store on 5th Avenue in Manhattan, New York, U.S., October 16, 2019. REUTERS/Mike Segar

The update requires app developers seek consent from iOS device
users in order for third-parties — like advertisers — to access
users’ data. This essentially makes targeting and tracking through
IDFA an opt-in feature. The bulk of mobile advertising goes towards
smartphones and Apple controls a significant share of the
smartphone market — 45.6% of
US smartphone users have an iPhone — so this change will have a
big impact on mobile spend.

The update will lead to a significant drop in the supply of
trackable inventory on iOS devices. Similar to users opting out of
location tracking, it’s likely that many users won’t give
permission to share their data with apps’ ad partners. This means
that advertisers will have less information about who they can
reach and a decreased ability to attribute outcomes.

This limits the premiums that app developers can charge
advertisers for placements — and likely reduce mobile ad spending
across the board. When Apple imposed tracking limitations on its
Safari browser, prices for ads targeting Safari users fell
60%
 in the two years since the update, according to The Rubicon
Project.

But there are two reasons why this update will have an upside
for mobile ad companies:

  • The update will force apps and advertisers to make their case
    to users as to why they need to collect data, and given broader
    privacy trends, this was inevitable. App developers will now need
    to convince users that sharing data with the apps’ monetization
    partners is a necessity, and possibly beneficial to users’
    experiences. Given the recent introduction of data privacy
    regulations like CCPA and GDPR â€”
    and the trending preference for opt-in frameworks elsewhere — app
    developers were eventually going to have to communicate this need,
    regardless of Apple’s update.
  • Apple was expected to kill tracking entirely within its app
    ecosystem, but instead is adopting a framework similar to its
    location data approach. “Apple introduced increasingly draconian
    controls on tracking in Safari over the past couple of years, and a
    lot of the industry suspected that they’d do the same in apps by
    eliminating IDFA,” said Yoram Wurmser, eMarketer principal analyst
    at Insider Intelligence. “Although opt-in requirements will cut
    trackable inventory greatly, it gives apps the chance to make their
    case for tracking, and some trackable inventory should still remain
    available.”

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Source: FS – All – Entertainment – News
Apple's new privacy update could have positive implications
for marketers