If you are an iPhone user, you’ve probably heard about the iOS 14.5 update, and you may have already updated your phone and experienced the changes. Or perhaps you are like some of us out here who ignore any update until our phone gives us no choice, and we have no idea what this new update is and why everyone is making a huge fuss. Either way, we are here to talk about what the iOS 14.5 update means to the users and the marketers alike!
What is the Update?
The iOS 14.5 update contained a new privacy tool that shook the tech world called App Tracking Transparency. This tool requests permission from the user to have their digital actions tracked by the app used. “Since 2012, apps developed for iOS have used an Identifier for Advertising (IDFA) to conduct tracking across different websites and apps.” While removing tracking was always available, the settings to do so were buried deep within your phone’s operating system. Before this update, 70% of iPhone users shared their IDFA with apps, knowingly or unknowingly. Now the choice is nearly unavoidable for iPhone users; they must either deny or consent to be data tracked. Since the roll-out of the new privacy tool, roughly only 5% of users have opted-in for tracking.
App tracking allows for those very targeted ads you see pop-up on your Facebook and Instagram feeds that feel a little “creepy.” Let’s say you look at a new rug on one app, and then you start seeing beautiful rug ads on your social feeds. Some may feel that this is tech intrusive, where others enjoy finding just what they wanted while stalking their ex on social media (to each their own), desperately in need of retail therapy.
Though it is still causing a stir in the digital world, an article from Forbes released in May details that the update is not going quite as planned. “The reality is that App Tracking Transparency in iOS 14.5 is a mess,” says Johnny Lin, a former Apple engineer and co-founder of tracker-blocking app Lockdown Privacy. The privacy prompts are inconsistent from a user perspective because app developers are working hard to find ways around the prompt and the setting within the iPhone that can “turn off” the prompts. Even with initial bugs and bumps, the new update is posing an issue for targeted marketing.
What does it mean for Small Business Marketing?
Small businesses became the buzzword that led to a very public fight between Facebook CEO Mark Zuckerburg and Apple CEO Tim Cook. Mark initially claimed that the new update would harm small business advertising on social media but later changed his tune after realizing that there were ways for his business to pivot, such as allowing small businesses to sell their products directly on Facebook and Instagram. We all know that Mark Zuckerburg will be fine either way (or rather, better than fine), but what about small businesses?
Over the last few years, digital advertisers have been spoiled by the amount of information we had access to. We soared beyond what traditional mediums like radio, print, and billboards could provide in reporting and directly attributed results. Unfortunately, the digital advertising industry flew too close to the sun, and while we've been set back, we're not out of the game yet. We can still reach audiences that are more relevant to small businesses than mass reach audiences through digital targeting. We can narrow in on ages, gender, and interests better than most advertising channels. And at a better cost too! Looking for women who are ready to move or relocate? We got you! Need active millennials to visit your shop for their birthdays? No problem! Looking for top decision-makers within a business organization? We already know where to go to reach them! Maybe we're not flying anymore like the fabled Icarus. But we sure as hell can still "fall with style" like Buzz Lightyear.
At Betsy Bash, one of the services we offer is ad management on social media platforms, so of course, we were very interested in the new update and what it means for our clients and us. Simply put, it means that we adjust our strategy while still achieving great results. We won’t be able to retarget people who’ve clicked on an ad or track their progress from social to websites. We can still target users based on their demographics, interests, and location—key elements to finding the right audience for your brand or business. The first step and arguably the most important step in advertising is making sure the right people see your ad, and we can still do that! In addition, as professional marketers, we’ve got a whole arsenal of tools to help us navigate any curveball thrown our way! Reach out to us if you are interested in help with your digital marketing strategy.