The Potential Impact on Advertisers
- Less Accurate Understanding of Intent, Interests and Behaviour
- Facebook uses tracking data from third-party apps to gauge this.
- Lower Click-Through Rates
- Because Facebook will have less data on a user’s actions, ads may increasingly be shown to people who have little or no intent to buy the product or service being advertised.
- Higher Cost-Per-Click
- With gauging intent becoming harder, audiences where intent is known will become smaller and brands will be forced to compete aggressively to reach them.
- Lower Return on Ad Spend
- As click-through rates fall and cost-per-clicks rise, conversions will become increasingly expensive and could have a substantial impact on returns.
But the Impact will Depend on Geography and the Audiences Targeted
- Countries with Fewer iPhones & More Android Devices
- In geographies where iPhone’s iOS 14.5 penetration is low and Android penetration is high, Apple’s App Tracking Transparency prompt will have less of an impact since user journey data gathered via Android will continue as is.
- Primarily Android
- Even in countries with high iPhone penetration, advertisers who mainly go after Android users will not be affected by the change in any significant way.