How is the new iOS 14 update going to affect your ads?

Apple has announced that changes to its iOS 14 update will affect Facebook ads and reporting (and potentially paid search management). The new iOS 14 update will allow users to control how they share their data, as well as who they share it with. This also gives a chance for users to learn about how an app uses its data.

This change began with Apple requiring privacy labels, forcing companies to share how your data will be used before you download a new app. The benefits behind the new update, Apple says, are all for consumer privacy.

Apple will require all apps within the App Store to show a message to users on iOS devices, asking for permission for the app to track them outside of the platform, essentially an opt-out button. Users will need to manually select these permissions. Once implemented, the opt-out button will greatly impact how iOS devices are used for insights, targeting and attribution.

The release of Apple’s iOS 14 will change the way app developers and marketeers can access the Identifier for Advertisers (IDFA) from an opt-out approach to an opt-in approach. IDFA is a persistent ID used by mobile devices that use Apple operating systems.

This is then shared by developers and ad platforms which powers the delivery of personalised advertising and targeting. Developers will also have to provide details on the data they collect and how they plan to use it.

Apps such as Facebook, Instagram, YouTube and Twitter will be required to ask users for permission to track data on them. If people choose to opt out of the app sharing their data, it will result in much less relevant ad recommendations that could lead to an overall decrease in the quality of the user experience. Therefore, it will be harder for advertisers to reach their target audience, especially when using iOS devices.

How would the new iOS 14 update impact Facebook ads?

The iOS 14 update will impact the way in which Facebook is able to receive and process conversion events from tools such as the Facebook pixel. Any businesses that advertise in mobile apps, plus those who optimise, target, and report on web conversion events will be affected. Prior to this change, Facebook automatically had an opt-in policy that if one wanted to opt-out, it required users to go into your settings and opt out of these permissions manually.

The new policy will prohibit data collection and sharing unless the users opt in to the tracking. Affecting remarketing lists, lookalike audiences and conversion events will all be impacted greatly.

If a user opts out, Facebook will not be able to track their behaviour, resulting in inaccurate reporting for conversions. When creating personalised ads for audiences, targeting options will be weakened. Fewer targeting options result in less personalisation of ad copy and more wasted spend.

What might happen to your website sales?

This change will impact businesses in different ways. Users who opt out of Facebook tracking will limit organisations from future remarketing towards individuals on mobile devices. In particular impacting smaller businesses attempting to render lookalike audiences. Weakened targeting options and the loss of personalisation could result in a 60% decrease in website sales from Facebook ads. Potentially, advertising on the platform could become less effective.

However, in light of this change, the update can bring an opportunity to businesses. With the right strategy in place, iOS 14 could ultimately lead to building trust and strengthening a relationship with customers.