Zorka.Agency investigates the latest market changes and the implications they have for advertisers.
Apple introduces a disruptive change in how advertising on iOS devices has historically been measured. Apple has announced that by the end of March 2021 users will be able to choose if they want to share their unique identifier right in the app, that is, to block the IDFA. Currently, about 70% of IOS users share their IDFA with app publishers, once this change is in place it’s estimated that this number will drop to 10%-15%.
It will become more difficult to drive iOS traffic. In general, advertisers will have to decide if the app promotion on iOS is still worth it. Thus, updated install costs may not fit the app’s marketing budget. It is likely that advertisers will focus on Android promotion, as iOS traffic will no longer be profitable – Karyna Vasiukevich, Zorka.Agency.
If you are a marketing specialist or an owner of a mobile app, you’ll need to update your measurement SDK to the latest version and start using Apple’s new ad platform SKAdNetwork (SKAN). Currently, the SKAN has had a poor reception from ad networks therefore advertisers, iOS product owners, and app publishers are expected to face with:
How SKAdNetwork works – Simplified data flow
Facebook will become available only for in-house purchases and with extremely limited functionality. Look-a-like audiences will not be available, since they are collected by IDFA. In other words, advertising budgets will shift from Facebook to in-app and programmatic traffic sources – Karyna Vasiukevich, Zorka.Agency
Facebook has historically been the main platform for generating iOS traffic, but the changes Apple is about to introduce will predictably cause Facebook to lose its leading position. Here are some significant outcomes that the new policy will lead to:
We recommend advertisers reconsider the volume of traffic distribution: in particular, redistribute the amount of Facebook traffic to other sources. We also recommend paying special attention to the mechanics of programmatic advertising.
Programmatic advertising is an AI-automated way of purchasing ads, that helps to target a specific audience on several platforms simultaneously.
Programmatic advertising can use hundreds of targeting signals to personalize ads like Facebook and Google, according to user lifestyle, habits, and their online behavior, making this automated buying tool indispensable in performance marketing in 2021.