Mar 17 The Impact of Apple iOS14 Update on Facebook Ads
Looking to optimize your Facebook Ads? Apple first released the iOS14 update in September 2020, but it has since released new versions the following months. A new version is also coming this month with cool new features.
For one, it now allows you to use Face ID even when you’re donning a face mask. Your Watch should be on and unlocked, however, so it’s not available to all users.
Amidst these cool new features is something that can trouble advertisers, however, especially those that use Facebook Ads. iOS14 is coming with app tracking transparency. Learn more about it below and how it might affect you.
Changes to Apple iOS14 That Might Affect You
One of the biggest inclusion of iOS14 for advertisers is the ATT, which is short for App Tracking Transparency. This policy requires apps to ask the users for permission before using their IDFA.
The IDFA is what Facebook and other apps use to target ads and analyze their performance. With the recent iOS14 update, users now have control over which apps they allow to use their identifier.
That means apps won’t be able to gather data that can help their targeting efforts. In turn, this will make ad placement harder, leading to less revenue for advertisers.
The users will receive a new screen on the App Store. It includes information about what data the app wants to use to track you. It will also show data linked to you that the app might collect, such as your financial information, location, browsing history, and location among others.
Apps now also have to ask the users for permission to track them. You can choose to “Allow” or “Ask App not to Track.”
The prompt will appear when the user opens an app for the first time after installing the update. It’s similar to how a previous update asked users to re-allow apps to access their photos with the added feature of allowing access to certain albums only.
Apple has two objectives for doing this. One is to make sure that all users are aware of what data each app will track. The other is to give a chance for users to opt-in to tracking.
In essence, users have to opt-in to provide permission. This is in contrast to Facebook’s previous set-up, which only allows users to opt-out. One is automatically tracked unless they update their privacy settings to disallow these practices.
The iOS14 Update Impacts
According to Mark Zuckerberg, this move will hurt the millions of businesses around the world. It will also have a huge impact on small businesses, especially those struggling to stay afloat. Dan Levy, the VP of Ads and Business Products, insists the update will limit their growth as it will make it hard for them to reach their ideal audience.
Levy also believes that it will make advertising less effective. Businesses might have to turn instead to a subscription-based model. It will also cause a 60% drop in website sales resulting from ads.
As Facebook is claiming that it has the greatest impact on small businesses, it created a page where owners can voice out their opinions about the iOS14 update. They’re the most vulnerable group as big brands have deep pockets, anyway.
The new update will not only affect apps but websites, as well. For example, a user clicks on a Facebook ad, which takes them to a website. That activity won’t get tracked if the user did not opt-in.
Facebook won’t be able to gather data from the activities on the website. It can’t use the activity for targeting and conversion tracking, as well.
Some data tracking practices that users have to approve include:
- Sharing device location data
- Displaying targeted ads based on data collected by other apps and companies
- Sharing emails and IDs with a third-party advertising network for retargeting and targeting like users
With the new update, users have to explicitly allow each app to do these things and more.
Facebook’s Response to the New Update
Facebook has begun urging iPhone and iPad users to allow the app to track their activity. It has its own prompts to explain why it wants to track the user’s activity. This should appear before Apple’s prompt shows.
Whatever the user chooses, however, Facebook will respect it. The company will continue to serve personalized ads, however, limited their ability is.
It’s even mulling over the decision to keep the Audience Network on iOS14. Facebook says that it might not make sense for the company to offer it on the new update in the future.
In response to the update, social media is also starting to process pixel conversion events from iOS14. Using Aggregated Event Measurement, users get to preserve their privacy while advertisers run effective campaigns.
Facebook is also limiting advertisers to eight conversion events per domain. This change will happen automatically, so advertisers should plan accordingly.
Pixels are also moving to domain-based ownership. If you use these to track events, you have to verify your domain to avoid disruption to your data.
You also have to note that 7-day view-through attribution and 28-day attribution will not be available anymore. Your historical data will still be available but only through API. You may have to update any rules you set to 28-day attribution.
The iOS 14 update will also likely decrease custom audiences that these apps can connect with. Make sure to broaden your reach to capture more potential customers.
Prepare For the Facebook Ads and iOS14 Update
You have to make sure to review all the changes to the iOS14 update and Facebook Ads. As Facebook and Apple continue to clash, all advertisers can do is prepare and update their strategies.
Granted, reviewing all these changes will be a huge headache. If you need help, don’t hesitate to contact us today.