Apple’s iOS 14.5 update is turning the digital advertising industry on its head. The new privacy options included in the update will affect ad performance, precision, and reporting. Move Digital Group’s Chief Strategist Larkin Grant explains the impact in detail and why she believes every business using Facebook or Instagram advertising should be prepared for change.
What’s included in the iOS 14.5 update?
Like most iOS updates, this one from Apple includes a wide variety of changes from translation add ons to new messaging options. The most talked-about feature is the new privacy options requiring users to give permission before apps can track their activity.
According to Apple:
[Users will] receive a prompt when an app wants to track you across apps or websites owned by other companies, or share your information with data brokers, and decide if you’ll give permission.
You can read the full update details here.
What’s so different about the iOS 14.5 update?
In this update, Apple wants to limit the amount of data that apps can collect unless users give them permission. Currently, the default setting on most apps is to allow tracking. In the iOS 14.5 update, Apple is changing that by setting the default to not track users. You must explicitly give permission before apps like Facebook and Instagram can use your data to deliver ads.
Will this update affect my digital advertising on sites like Facebook and Instagram?
If your business advertises on Facebook or Instagram, then it will likely be affected.
According to Facebook:
[this update] impact how we receive and process conversion events from tools like the Facebook pixel. […] Specifically, Apple will begin to require that apps in the App Store that engage in what Apple defines as “tracking” to show a prompt to iOS 14 users, in accordance with their AppTrackingTransparency framework. Apple’s policy will prohibit certain data collection and sharing unless people opt into tracking on iOS 14 devices via the prompt.
When will the new iOS update take effect?
The 14.5 update is currently out for iPhone users to install. Not all users update their operating systems as soon as they are released and so we expect the changes to be gradual.
Will this update affect my business?
If your business advertises on Facebook or Instagram, then it will likely be affected.
What changes can I expect to see in my Facebook and Instagram ads manager?
So far here is what we know:
- Ad performance fluctuation
- Increase advertising costs
- Audience sizes may decrease
- Less precision in who you can target
- Delayed reporting results
- Reporting may look different with less data available
What do I need to do to prepare for this update?
There are a few steps that Facebook recommends you take to prepare your advertising account for the iOS 14.5 update. They include:
- Verifying your domain with Facebook
- Configuring preferred web conversion events
My final recommendation is to take a beat. While this update is substantial, it is not unusual in its scope. Updates happen all the time, whether from Facebook, Google, Android, or Apple. We marketers are all in this together and will figure out how to continue on and make these changes work.