It’s finally happening.
We’ve been watching, future-proofing, and waiting patiently since Apple first announced that they would be releasing a potential game-changing update. At last, we have a definitive date. D-Day: April 26th.
In essence, once iOS 14.5 is released as of next week and installed, users will begin to receive prompts on their devices to either allow apps, such as Facebook, to track their activity, or, to opt-out and remove any tracking. Opting-out will remove any learning that apps currently have about users, impacting targeting capabilities for advertisers.
See example of prompt below from ASOS.
What to expect in the weeks following rollout?
We expect to see audience fluctuations in performance. As more users update to iOS 14.5, with some users opting-out, we may begin to see a greater impact to delivery and reporting. This will likely result in performance fluctuations and increased CPAs for the time being, as the platforms learn and adjust to the update. However, this is all totally dependent on uptake of the opt-out option.
What audiences will be most affected?
As more people upgrade to iOS 14.5, opted-out users will automatically be excluded from certain targetable audiences, which may result in decrease of audience sizes.
We anticipate remarketing audiences such as social and app engagers, website visitors, and dynamic remarketing audiences will see the most direct fluctuations in audience numbers if users opt-out. However, brands can leverage first party audiences to fill any gaps we are seeing. Building these audiences has been a priority for our clients.
From an acquisition side of things, we anticipate the “engaged shoppers” audience and, to some degree, interest-based targeting to see fluctuations as well. There are opportunities to leverage broader targeted interest based audiences and lookalikes to fill these gaps as well as the platform learns.
What are we recommending clients do?
Thankfully we, at Wired, have been following the progress of this closely and have been preparing our clients for these changes over the past 6 months. For the coming weeks, we will be working closely with our clients on audience performance analysis to define what our Plan B and Plan C looks like when things take a turn. We encourage brands to do the same.
For longer-term recommendations:
- First Party Data is now gold. Brands should be strongly considering first party data in the acquisition & targeting strategy for brands moving forward, looking at an always on approach for attracting new customer data.
- Demand Generation and top of funnel digital approach should also play a bigger role in the marketing mix, so brands are exposed to more people more often. We can achieve this across social and other digital platforms like Display & YouTube.
As these changes across social platforms continue to roll out, we will be sharing the latest updates and recommendations. Keep an eye out for our next updates!
Bonus info for the Techies…
Looking at the more technical side of things – What’s going to happen from next week?
There will be a number of reporting changes that will go into effect on the day Apple enforces its prompt. Facebook has stated:
o 1-day click-through opt-out data will be modeled.
o 7-day click-through and 1-day view-through attribution settings will no longer include iOS 14.5 opted-out events.
o Action and demographic breakdowns will be deprecated for offsite events.
o Attribution setting default will change to 7-day click-through for newly created ad sets and web event campaigns.
o 28-day click-through, 7-day view-through, 28-day view-through attribution settings will be fully deprecated along with the Comparing Windows feature.
o Attribution methodology will shift from Impression Time to Conversion Time.
o iOS 14.5+ mobile app install campaigns will use SKAN for attribution.
Also, from Facebook: 100% of advertisers will see the new Aggregated Event Measurement experience by Day 14 (post rollout).
o All advertisers are subject to the 8 event per domain limit for optimization in campaign creation.
o Ad sets will be paused if they are optimizing for an event that is not configured for AEM.
o Ads that have not selected a domain for tracking will also be paused.
o Modification to some web event configurations, including reprioritization, will automatically pause ad sets that are impacted by the event change (the changed event and all lower priority events) for 72 hours in order to help minimize the risk of incorrect attribution.
Author, Luke Wilson, Senior Social Media Specialist