Advertising & Marketing I Canada
Apple's privacy changes represent 'tectonic shift' for digital ad industry - AdAge.com
Critics say ad personalization, measurement and other ways marketers reach consumers will cease to function.
Trade groups respond Apples announcement drew criticism from both the Association of National Advertisers and the American Association of Advertising Agencies (4As). In a joint statement today, the groups said that Apples actions appear to continue a damaging pattern that began with its Safari web browser and will now extend to its mobile app ecosystem. Both groups said the changes will impact publishers and mobile app developers, adding that ad personalization, measurement and other capabilities that marketers require to reach consumers will cease to function. Advertising revenue funds vital news-gathering and reporting and supports the development of innovative products and services, said Alison Pepper, exec VP of government relations at the 4As. Cutting off this critical income stream for mobile app publishers and developers will hurt an already struggling news industry and countless small businesses and developers who will be forced to find new sources of revenue to fund their operations in order to survive. The Interactive Advertising Bureaus Tech Lab acknowledged Apple's intentions. By moving IDFA to opt-in and announcing other privacy-related changes, Apple apparently aims to educate users and offer choices, instead of making decisions for them, Dennis Buchheim, president of the Interactive Advertising Bureau Tech Lab, told Ad Age. But theyre still taking an entirely proprietary approach, and consumers need predictable privacy across all experiences, operating systems, and browserswhich necessitates open standards. Impact on targeting The IDFA feature is essentially a way for advertisers to target Apple users and measure engagement, says Brian DeCicco, exec director of customer strategy at Mindshare. What IDFA can do for marketers is twofold, says DeCicco. It can determine which actions a user takes in an app and connect those actions to an IDFA profile. The second, DeCicco says, allows marketers to capture consumer interaction with digital ads and attach it to an IDFA. This helps you understand engagement and measure performance of an ad campaign, he says. The changes to IDFA will impact even some of the largest ad platforms. Facebook, for instance, is widely regarded as among the biggest and best when it comes to getting consumers to install apps. The company offers two technologiesApp Event Optimization (AEO) and Value Optimizations (VO)for finding new users for mobile marketers. Without IDFA, however, brands will face an uphill battle acquiring iOS users through AEO and VO technologiessomething Facebook has built into a multi-billion dollar business, according to one person with knowledge of the matter. Will those specific product lines have an impact on Facebook? Yes, [IDFA changes] will have an impact, says Wagman, the MediaLink exec. Direct-to-consumer brands hoping to go from being the 400th most popular app to the 25th will use AEO and VO to capture that growth, according to Wagman. Or it is a tactic agencies will use to drive more downloads for the Home Depot app, [for example] he says. A Facebook spokeswoman told Ad Age in an emailed statement that it's working with its partners to better understand Apples latest updates and how they affect businesses and people. We share the industrys desire for more transparency and controls in the way ads run online, while ensuring personalized advertising continues to deliver value to both people and businesses, Facebook said.