Apple Data Privacy has been creating shockwaves over the digital marketing realm in the current time for several weeks as it proclaimed a new data tracking prompt as part of its most advanced operating system, iOS 14.5.
Let’s take on the opportunity to see the current lay of the tract where data and data privacy are progressing.
Recent Modifications: Data Privacy And Gathering
Until 2018, websites and those administering data privacy worked on the concept of “Implied consent”: users acknowledged that they learned their data was being tracked and handled through their presence. When GDPR got enforced in May 2018, one of the decisive elements around it, “The Cookie Law” – adopted initially as an EU directive after May 2011 – came powerfully to the fore. Cookies are used to register website users’ data. Examples are:
- Link clicks
- The time spent on the website
- Shopping cart
First-party Cookies are those generated by the website creator or developer on that website. Third-Party Cookies – the case of most privacy regulations – are designed to trace what consumers do when they move away from the site. The recent announcement came from Google who plans to update its privacy strategy in 2022.
The Apple iOS 14.5 Update
Since April 26, 2021, Apple users are immediately provided with an App Tracking Transparency notification for each app on their device, giving them the ability to opt out of holding their data tracked across platforms. In other terms, they can opt out of IDFA-based (Identifier for Advertisers) tracking. Apps in the Apple iStore will immediately require compliance with Apple’s new policy and allow the user to opt-out of tracking to remain accessible on iPad, iPhone, and Apple TV. Apple is throwing down the gauntlet with its setting centre-stage the data privacy concerns of its users. Of all the social platforms affected by this change, Facebook is a huge deal to influence their whole revenue paradigm.
Effect on Facebook And Instagram
Quite frankly, if you are an iOS user who should opt-out of cross-platform tracking, there will be no way you can be retargeted on Facebook with a sponsored ad. There will be no more third-party tracking of users that opt-out.
It will affect Facebook ads in many ways:
- Retargeting Ads
- Restrict Data available to advertisers
- Data Collection for Lookalike Audiences
This is the notification that Apple users will see the first time going back into Facebook after the update.
iOS 14.5 and Dynamic Landscape of Data Privacy
Facebook carried out (with no ambiguity) full-page newspaper ads contesting the changes in the prominent US dailies, with the information that minor to medium enterprises would have their very business models endangered. The ad concentrates its message that driving away from the ability for advertisers to retarget will influence business models for small and medium-sized businesses. These will then put up their paywalls to trade with the changes. That is Facebook’s thought any way. Following on from the advert, Facebook commenced prompting users to “show personalized ads and keep Facebook free”, indicating that you might be pushing a change in the platform by opting out. It’s yet to be observed if this is a message Facebook will talk about publicly, how this could proceed, etc.
How does this influence Digital Marketers?
Apple Data Privacy update is an immediate threat to the “personalized ads” model in key businesses: the product a consumer has been seeing or might view, based on the data so far discovered. In the US, 96% of iPhone users are recognized to have opted out of app tracking since iOS 14.5 launched. Retargeting currently accounts for smaller than 5% per cent of Facebook’s, but given that the platform has an $84 billion annual ad revenue, that is a notable 5%. And that’s simply retargeting. The consequences of an entire market of device users opting out will have other implications yet to be observed. 27% of all mobile users for iOS accounts are comprehensive, and approximately 60% of mobile users in a developed syndicate like the United States and even more eminent in Japan. These are the businesses with high spending potential and significance to the growth of social commerce.
Because Facebook will still handle information straight from consumers while on their platform, the following components won’t be influenced by the update:
- Facebook Ads Manager
- Facebook/Instagram Insights
- Any retargeting Ads which target Android Users
- Ads targeting by demographic or Interests etc.
Remember, you can still check under Facebook Ads Manager whether the attendance is Apple or Android-based.