How the iOS 14 Privacy Change Impacts Small Businesses

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The AppTracking Transparency framework was introduced in spring 2018. Different companies now have to disclose the data they collect and use from their customers. After that, the user can decide whether or not they want the app to track them and use their device's advertising identifier.

It will be difficult for digital advertisers to reach their audience. They won't be able understand the effectiveness of their campaigns.

Social media platforms: Where are they now?

This update will directly impact many social media platforms as well as companies. Facebook, however, has resisted it openly and claimed that the update will impact the growth of millions worldwide businesses. It will be devastating for small businesses that have limited advertising budgets and no access to their target audience.

Apple responded to Facebook's claims above. Apple believes that if a company relies on misleading its customers by exploiting their data, it should not be praised for its policies.

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Is Apple making positive changes with the iOS update?

This is a good thing for the user because it gives them more control over their privacy. They will have control over how their data is used and by whom.

Because they are more conscious of the use and privacy of their data, people welcome such moves by tech companies. Many users might opt out of this service if they don't wish their data to tracked. This could have negative consequences for businesses who set a budget to advertise on these social media platforms.

Are you really that bad?

Apple's efforts to give individuals more control over their data privacy should be commended by some. However, it is not all bad if you look at the other side.

This will be a direct hit for small businesses. Because they can't afford other advertising channels, small businesses will feel this directly. We need to get down to the bottom of this.

Facebook provides data to advertisers about the effectiveness and success of its campaigns using different metrics. One of these metrics are "view-through conversions". This is a measure of how many people view an advertisement, but don't click it. Facebook can lose this source information and it can cause a huge loss. This is exactly what the iOS 14 update does.

Advertisers will not be able to measure the effectiveness of ads on Instagram or Facebook. They will instead look at other platforms. These platforms will allow them to see the ROI (return-on-investment) of the theory ad campaign. Apple's policy directly influences Facebook, not small business owners.

What will it mean for Facebook advertising?

Snapchat and Google aren't the only platforms to voice concern about this issue. They are working to ensure that the policy does not negatively impact their users.

These platforms may be more supportive than opposed to the iOS 14 update. They will still feel the Facebook-like impact. Facebook now has less data access. The same goes for clients. They are unable to effectively target ads. These small businesses claim that the update would affect them.

This update has not affected many small businesses. Small businesses may not need as much data as the IDFA (identifier for advertisers). They don't need the primary age, distance or location of the user. These data are available via the Facebook app. This data is not tracked.

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Reporting and measurements have changed

While we are still assessing the impact of Apple’s new policy on Facebook’s revenue, things do not look good for the former. Nearly all iPhone users have installed the latest update. Experts predict that most users will choose to opt out of tracking features. This could reduce Facebook's overall revenue by as much as seven percent. Advertisers won't have the ability to optimize their ad targeting, which can lead to a drop in overall revenue. Due to the lack of real-time data, delayed reporting will be possible.

Modifications to attributions and metric calculations

There have been some changes in attributions and metrics. Because users chose to opt out of tracking, this has led to data loss. To get its data, Facebook must now rely on SKAd Network by Apple. This will not be the same real-time data Facebook could get from its app.

This will cause delayed reporting. Advertisers will need to wait at least three days before they can get the SKAd Network API form Apple. They aren't relying on live data to create their campaigns.

The final word

Facebook is a great example of how to manage changes. Change can be scary. It will rebound strongly in these situations as well. This is the basic idea of how to assess the impact and devise strategies to address it.

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