How Apple’s New Privacy Policy Can Impact Advertisers

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Back in June 2020, Apple made huge waves when it announced significant privacy changes to its new iOS 14 updates. These developments will forever change the way businesses advertise through mobile apps.

A digital agency focusing on mobile advertising for their clients will need to brace themselves on how the changes will affect their performance. Now that the release of the update is just around the corner, here’s what every consumer and business owner should know about Apple’s new initiative.

What is IDFA?

iOS devices use a system called “Identifier for Advertising” or IDFA to help businesses target their mobile ads and estimate their effectiveness. Whenever a consumer uses an app on their phone, those apps can track their behaviour across other apps and websites in order to target them for advertising.

IDFA does the tracking without revealing the user’s personal information. However, with Apple taking a strategic stance on privacy being every user’s right, IDFA will be rendered nearly pointless!

What are Privacy Labels and ATT?

The new iOS 14.5 update will come along with the implementation of the new App Tracking Transparency (ATT) feature that has left a lot of advertisers wondering how they can work around it. This new feature aims to ensure that there’s transparency in the process.

Here’s how the new system works:

  • All product pages in the App Store will be required to have a privacy information section called the “Privacy Nutrition Label.” This gives users key information about how each app uses their data. All app developers will be obliged to self-report their data practices for transparency.
  • ATT, on the other hand, requires apps to get every user’s permission before tracking their data across different apps or websites. Through the iOS device settings, users can easily see and make changes to which apps have permission to track their data.

How does ATT impact mobile advertisers?

Without the help of the IDFA in tracking users behaviours for ad targeting, a significant disruption in the mobile ad ecosystem is bound to happen. Things like audience targeting, operational tracking, frequency capping, and improvements in user experience will be nearly impossible. It basically renders advertisers blind to what consumers like to see on their device!

Should advertisers be worried about the new update?

For now, there’s no reason to panic. The change will mainly affect mobile advertisers—but its ripple effects can still be felt by those in web advertising.

There has been a slew of privacy changes in the industry throughout the years, and this is just another entry to the list. While it may pose some challenges, the extent of the impact is still speculative and will not be felt until the update is live. Collectively, the mobile advertising industry should treat this as an opportunity to re-organise their ad performance strategies.

Final Thoughts

While some industry players are looking at Apple’s new privacy changes as the next adpocalypse, it’s not the end of the world. ATT is set to make an example of how companies should value the privacy of their consumers. All in all, it’s just a matter of time before companies and advertisers find a way to make the changes work for them!

Whatever the changes may be, you’re going to need a partner to help you with all your advertising needs. This is where Lethal Digital does its job for you. We are a results-driven digital advertising, and web design agency all rolled into one—making sure smaller businesses succeed online. Let us identify your needs and provide you with a strategic solution. Contact us today, and let’s start working together!