Apple E-commerce Affect Dramatically In iOS 14 Facebook has been at the forefront of online advertising since 2007 and is no stranger to change. For years, it reigned supreme, providing a platform for e-commerce brands to market their goods and services online.
But come early spring, both advertising and social media could face one of the most significant changes seen in the last decade ― iOS 14.
Announced during the annual Worldwide Developers Conference (WWDC), Apple stated that the Update would drastically alter the way apps ask for and collect user data.
Still, this doesn’t mean your sales numbers have to suffer. On the contrary, with careful planning, you can find creative ways to face the changes. So let’s look at the privacy updates in iOS 14, how they’ll impact e-commerce advertising, and how you can prepare for tomorrow’s challenges.
What Is Apple’s iOS Privacy Update in E-commerce
Since the launch of iOS 14, all apps that collect user data and share it with other companies will need to follow the AppTracking Transparency (ATT) framework. Another pending change comes from Private Click Calculation, or PCM, a modern web attribution protocol providing users with resources for adhering to ATT. If a user opts-in, there will be no changes to their data collection. They’ll continue providing data to e-commerce brands and app developers alike. While these are all significant changes, they’re not the most controversial adjustments advertisers, app developers, or e-commerce brands must make.
1. IDFA.
IDFA (Identifier for Advertisers) is the unique Apple ID assigned to every existing divide in a user’s applications. You might know it as Google Play Services ID (GPS ADID) on Android.
They’re similar to cookies-to-browsers in terms of user-to-app communication. IDFAs track, target, and personalize in-app advertising.
With iOS 14, Apple will require users to permit iOS apps to collect and share data. In addition, they will automatically remove apps that do not comply with the AppTracking Transparency Prompt (ATT). Of course, this will restrict tracking options and personalization for users.
2. SKAd network. Apple E-commerce
Software Development Kit (SKAd) is a collection of tools governing how Apple apps develop, run, handle, and use ads. As iOS 14’s privacy changes go into effect, all of this will change. Essentially, apps used for advertising will go through Apple’s SKAd network.
This network will include detailed information, such as click-through attribution for Publisher ID, Campaign ID, and Conversion Value, which you, the advertiser, set. In addition, for browser, email, and non-in-app advertising, the network will also provide click-through attribution.
Although this seems like plenty of information, Facebook won’t provide as much insight into audience app installs and uses anymore.
3. ATT. Apple E-commerce
- App Tracking Transparency (ATT) is a new prompt everyone will see across all Apple apps. It will require users to give explicit consent for apps to collect and share their data. Apple will block apps that do not include this prompt
- Tracking examples include (but are not limited to):
- Sharing email lists with data brokers.
- Using a third-party SDK that combines user data from your app and other developers’ apps for any reason.
- Sharing email lists, advertising IDs, or any other ID with third-party advertising networks that use that information for retargeting purposes.
Why Is the Apple E-commerce iOS 14 Update Happening
Apple’s stricter privacy pivot aligns with new concerns over election interference, political polarization, and social media responsibility on public opinion.
Most recently, Apple has:
- They have begun using Privacy Labels, forcing companies and developers to disclose how they intend to use data.
- They added pop-ups to the iOS 13 update, so users know when tracked by an app and give them the option to allow or deny access.
- Restricted third-party cookies while limiting the use of first-party cookies in Safari (advertisers and websites cannot, by default, track users anymore).
In their iOS 14 announcement, Apple stated:
“Privacy Is A Fundamental Human Right, And At The Core Of Everything We Do. That’s Why With Ios 14, We’re Giving You More Control Over The Data You Share And More Transparency Into How It’s Used.”
Who Will be Impacted by the Apple E-commerce iOS 14 Update
The iOS 14 update will impact app developers, digital marketers, and small online business. Anyone who relies on paid online advertising, data collection, or retargeting will need to adapt to privacy regulation changes and adopt more creative advertising approaches.
1. App Developers.
The Update will impact mobile apps that rely on advertising. Facebook has been the digital advertising go-to for years, generating $21.2 billion in Q3 of 2020 alone.
2. Digital Marketers.
About 70% of Apple users share data with app publishers. However, this number may decline once the iOS 14 update goes live, increasing over time as developers improve their opt-in messages, rethink their strategies, and pivot their marketing strategies.
3. Small Online Businesses.
Businesses that rely on Facebook’s paid digital advertising may find it harder to reach their audiences and revenue goals. Still, they may avoid tricky financial situations if they pivot in time.
How Will The Ios 14 Update Impact Apple E-commerce Marketing
Many e-commerce companies have relied on Facebook for their advertising needs for years. Aside from being more affordable than most alternatives, like Google Ads, it offers plenty of filtering and customization options.
Compare that to newer platforms like Snapchat or TikTok, and you can see the difference. Facebook has been handling online advertising for far longer, being one of the oldest platforms on the scene and the original advertising social platform. They’ve optimized processes over the years and prioritized data collection and hyper-relevant targeting.
With Apple iOS 14’s Update, Facebook must adapt to a new way of handling ads, data, permissions, and targeting.
This reduced available data will affect almost everything, including dynamic ad units (specific products users have shown interest in).
In other words, iOS 14’s new Update will force online advertisers to get creative. With tech fast approaching a new, privacy-centric future, they’ll have to find new ways to not only reach audiences but do so in a way that does not violate privacy laws.
Conclusion
Announced during the annual Worldwide Developers Conference (WWDC), Apple stated that the Update would drastically alter the way apps ask for and collect user data. Since the launch of iOS 14, all apps that collect user data and share it with other companies will need to follow the AppTracking Transparency (ATT) framework. With iOS 14, Apple will require users to permit iOS apps to collect and share data. The iOS 14 update will impact app developers, digital marketers, and small online businesses. About 70% of Apple users share data with app publishers.
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