Apple enhances privacy as marketers look for the human connection

What is changing in iOS 14.5?

iOS 14.5 has some awesome new features, including one which will allow you to use face ID while wearing a face mask. Another feature worth mentioning is that Apple finally allows the user to select a default music player, a big hooray for all the Spotify users out there. However, the feature that deserves the most attention is the AppTracking Transparency framework (ATT) that will completely disrupt app usage of Personal Identifiable Information (PII). As a result, app builders will have to ask for consent from the user and specify to them the data collected, the purpose of the collection and the third parties involved, such as Google and Facebook integrations. Sounds familiar? An earlier article addressed the changes with third-party cookies and the need for first party data.

How will this impact digital marketing and advertising?

From iOS 14.5 onwards, apps will need to ask for permission to process PII data. Without that consent, Apple will not release the IDFA (identifier for advertisers) that is used for recognition in Ad Networks, Data Management Platforms (DMP) and Customer Data Platforms (CDP). Furthermore, the publisher of the app is responsible that no third party will access the user data without that consent. This will impact the Single Sign-On (SSO) from Google, Facebook and others. It will include their Software Development Kits (SDKs) as well. In short, you’ll lose the integrations with third parties for the users that have not consented. Apple made it clear that apps are not allowed to gate app functionality based on consent either, meaning the app must be fully functional for users that do not consent as well. You are allowed to explain your ask to the user before the consent pop-up prompts.

Without data permission, measurement targeting will become increasingly difficult. You will not be able to use Remarketing, SDKs, SSO and audiences without prior consent. Cross-app advertising will be significantly reduced, impacting businesses that use apps for digital marketing.
That does not mean that you are short on options when it comes to app marketing. You will still be able to use the context, app store keywords and specific app targeting. For conversion measurement, Apple has created a privacy-friendly solution that, unfortunately for the advertiser, involves scrambled timestamps, no ID and aggregated data only.

Asking for consent and becoming compliant

Privacy is increasingly becoming a bigger topic within digital marketing that stretches beyond legislation. Trust is key to customer data consent. Getting consent from that customer will become key to data-driven strategies. Up until now you could rely on third parties for data purposes, but now is the time to develop a first-party data strategy that focuses on your direct customers. Consider what data you need to collect to drive the human experience and consider when and how you’ll ask your users for permission. Note: Hundreds of apps will prompt the user with the consent question and one might wonder how that will affect the app user experience, especially within that first few weeks.

Getting ahead of the curve can create a clear advantage for your business. The first couple of widespread apps are already deleting the SSO opportunities for their customers and building owned databases. Even Google will stop collecting the IDFA in its owned apps and will rely on owned data rather than the device ID. No matter what you decide: Preparation is key and time is limited as the widespread iOS ecosystem will impact businesses sooner rather than later.

If you want to know more about these changes or want to consider your data strategy, reach out to Nathan Struik (+318 828 808 03 or nstruik@deloitte.nl).

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