Apple’s New Privacy Update May Be a Nightmare for Ad Campaigns

Apple has just revealed what its new privacy update entails and when it is going live. The new privacy feature is being called App Tracking Transparency (ATT). It was originally previewed last year, and it will give you much more control over your data.

What does the update change?

Currently, third-party apps can and often do share your data with other apps for tracking, and you guessed it, ad targeting. This is done by assigning a UID (unique ID) to each user. Each app can add and share data via this UID.

Apple will now require apps that utilize this feature to display a pop-up to users informing them they do this. Users will then be able to accept or decline. If they decline, Apple will not provide a UID, and therefore, they will not be able to access data from other apps.

How will this affect ad campaigns?

One of the main reasons these apps share data is for ad targeting purposes. Here’s how it does this:

1. You begin searching for dog treats on one app but never fully make up your mind.
2. You visit another app (like Facebook), and an ad pops up about dog treats.
3. The ad revisits your intention to buy dog treats and helps you decide to buy theirs.

After this update, it will go more like this:

1. You begin searching for dog treats on one app but never fully make up your mind.
2. Facebook has no idea what you just looked up, and therefore, did not show you ads accordingly.
3. You never buy anything because the idea left your mind.

Ultimately, this will hurt your ads campaign because it can no longer show your ads to people who apps know have interest in your product.

Apps like Facebook will be forced to find data from other places to substitute, and I think these new places will not provide reliable data.

How can you prepare?

Ideally, you want to change situation two from above to a situation where you have no dependency on the user having past interest.

Something like this:

1. The user goes to Facebook not looking to buy anything
2. They see your ad, and it convinces them they need to buy your product despite not having any interest before.

There is only one way to accomplish this:

Making a very high-quality ad. 

It is now more important than ever to use the correct language and design to convince users they need your product.

Of course, some people will still allow apps to share their data, which means it is not a total loss, but I think everyone will see at least a small drop in clicks and conversions.

Ads have already seen a lot of struggle this past year. With increasing costs for ads, they are becoming less successful for small businesses. This might very well be the nail in the coffin.

We can only wait and see.